Jumbo Loan

Sunday, July 22, 2007

· A mortgage for an amount that exceeds conventional conforming loan limits, which determine which loans can be bought by Fannie Mae and Freddie Mac, the government-sponsored enterprises that are the biggest buyers of residential mortgages in the United States.

· In 2007, a loan for a single-family property that exceeds $417,000, or $625,500 in Alaska, Hawaii, Guam and the Virgin Islands.

· A loan that must be sold to investors other than Fannie and Freddie, such as insurance companies and banks.

· A mortgage that carries a higher-than-conventional interest rate. The interest rate premium usually runs 0.25 to 0.5 percentage points higher on such loans.

CONTINUED     1        >

© 2007 The Washington Post Company