Jumbo Loan
A mortgage with a loan amount exceeding the conforming loan limits set by the Office of Federal Housing Enterprise Oversight (OFHEO), and therefore, not eligible to be purchased, guaranteed or securitized by Fannie Mae or Freddie Mac. OFHEO sets the conforming loan limit size on an annual basis.

Also referred to as "Jumbo Mortgage".

Investopedia Says:
Jumbo loans are often securitized by institutions other than Fannie Mae or Freddie Mac. These securities carry more credit risk than those issued by Fannie Mae or Freddie Mac, and therefore, trade at a yield premium which translates into slightly higher interest rates. However, in recent years the spread in interest rates between jumbo and conventional mortgages has been reduced.

Related Terms:
Conforming Loan Limit
Fannie Mae - Federal National Mortgage Association
Freddie Mac - Federal Home Loan Mortgage Corp
Interest Rate
Jumbo CD
Mortgage
Real Estate Investment Trust - REIT
Risk

• Secured Card
• Secured Debt
• Secured Note
• Secure Option ARM
• Securities Act Of 1933
• Securities And Exchange Board Of India (SEBI)
• Securities And Exchange Board Of India (SEBI)
• Securities And Exchange Commission (SEC)
• Securities And Exchange Commission (SEC)
• Securities Exchange Act Of 1934
• Securities Industry And Financial Markets Association (SIFMA)
• Securities Industry And Financial Markets Association (SIFMA)
• Securities Industry Regulatory Authority (SIRA)
• Securities Industry Regulatory Authority (SIRA)
• Securities Investor Protection Corporation (SIPC)
• Securities Investor Protection Corporation (SIPC)
• Securities Lending
• Securities Transfer Association Medallion Program (STAMP)
• Securities Transfer Association Medallion Program (STAMP)
• Securitization
• Securitize
• Security
• Security Analyst
• Security Market Line (SML)
• Security Market Line (SML)