Jumbo Loan

[Anonymous]

Can someone set me straight on the jumbo loan definition? If I'm looking at a $750,000 house, with a 20% down payment, that would make my mortgage amount $600k. Am I stuck paying jumbo rates? I thought certain areas, DC among them, had higher limits on regular conventional loans?

[Anonymous]

Seriously? Google is your friend. DC Metro area = conforming loans up to $625,500


Took me 5 seconds to find it.

[Anonymous]

Thanks, I'm more of a Bing man myself. Maybe that was my first mistake.

I was a little confused because two mortgage bankers I've talked with mentioned my loan would be jumbo, and a calculator that asked me specifically where I live also only offered me jumbo rates, so the information I've been getting has been contradictory to what Bing was telling me.

Thanks for the sarcasm though!

[Anonymous]

It's a conforming jumbo. So, it is backed by the government but riskier than a conventional loan, yet not as risky as one not backed-therefore lower rates than a non-conforming jumbo.

[Anonymous]

Under $625k in DC metro is conventional and conforming.

[Anonymous]

I am a lender here in Washington D.C and have helped many DC Urban Moms & Dads. There are three classifications of loan size. Conventional Conforming = $0 - $417K. Conventional High Balance = $417K - $625,500. Above $625,500 is considered Jumbo.

The interest rate difference between conforming and high balance is generally .125 - .250%. Jumbo rates are not necessarily higher but come with different rules and requirements.

If you'd like more information and detail, contact me at [e-mail] or [phone].