Jumbo Mortgage

Intermediate 🏠 Real Estate

Definition

A loan exceeding conforming limits, charged higher rates and requiring pristine credit, the luxury tax of mortgages.

Example Usage

The $2 million property required a jumbo mortgage with a 0.75% rate premium over conforming loans.

Origin

Secondary mortgage market terminology

Fun Fact

Jumbo loan requirements are dramatically stricter, requiring larger down payments and lower debt ratios.

Source: Mortgage lending practices

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