Investor Glossary-jumbo loanInvestor Glossary-jumbo loanInvestor Glossary-jumbo loanInvestor Glossary-jumbo loanInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Jumbo Loan

The HTML to link to this page
 

A jumbo loan is a mortgage with a principal balance that exceeds the lending limitations established by Freddie Mac and Fannie Mae, the purchasers and guarantors of the secondary mortgage market. The cutoff principal amount above which any loan is considered a jumbo loan is set each year. The jumbo loan is often called a non-conforming loan, and while every jumbo loan is nonconforming, not every nonconforming loan is a jumbo loan. (For example, a mortgage may be below the conforming loan limit, but involve less borrower documentation than is typically required.) A jumbo loan will generally have a higher rate of interest than a conventional mortgage. A borrower who needs to borrow modestly more than the conforming loan limit might consider a conventional mortgage and a small secondary mortgage as an alternative to the jumbo loan.



Rate this jumbo loan definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use