What is a jumbo loan

A jumbo loan:

  1.  is also known as a conforming loan
  2.  typically has higher rates than a conforming loan
  3.  is within the limits defined by Fannie Mae and Freddie Mac
  4.  is any loan over $1,000,000

Answer: B…D is partially correct – although a jumbo loan is usually in excess of $1,000,000 it is more accurately defined as being greater than $417,000 for most of the USA.