Jumbo Mortgage Calculator

What makes a loan 'jumbo'?

A mortgage is jumbo when it exceeds the conforming loan limit set by the FHFA — $806,500 for a single-unit home in most US counties (2025 baseline; higher in designated high-cost areas, up to $1,209,750). Loans above the limit cannot be sold to Fannie Mae or Freddie Mac, so lenders keep them on their own books or sell them to private investors — and underwrite them more carefully.

Jumbo requirements versus conforming

• Down payment: typically 20% or more; some lenders allow 10% with top-tier credit and higher rates.
• Credit score: usually 700–720 minimum, best pricing at 740+.
• Reserves: 6–12 months of payments in liquid assets after closing is common.
• Documentation: full income and asset verification, often two appraisals on higher-priced homes.
• DTI: caps near 43–45% are typical, tighter than conforming programs.

Are jumbo rates higher?

Surprisingly, not always — in recent years jumbo rates have often priced at or below conforming rates, because jumbo borrowers are statistically strong and banks compete for their broader business. The real jumbo costs are the stricter approval bar and the sheer size of the payment: on an $880,000 loan at 7%, principal and interest alone are about $5,855 a month, before five-figure annual tax and insurance escrows. Run your scenario above, then compare total ownership cost using the PITI calculator and check the interest exposure in the interest calculator. Splitting into a conforming first mortgage plus a piggyback second is sometimes cheaper — model the pair with the comparison calculator.