Today’s real estate. Word of the day is jumbo loan. going to go ahead and read this word, define it for you, use it in a sentence and quickly discuss it. Jumbo loan is a loan that exceeds the Fannie Mae and Freddie Mac loan limits, currently five hundred and forty eight thousand two hundred and fifty also called a nonconforming loan. Freddie Mac and Fannie Mae loans are referred to as conforming loans.
Now, this number is going to change based on where you happen to live. So there’s going to be different numbers in different areas. So it goes after the expensive where you happen to be in the cost zone that you’re in. But in general, that’s the number right there. Ladies and gentlemen, that is the word jumbo loan. Now, if you happen to be lucky enough that you’re buying an expensive property and this is coming into play for you.
Often people will put something behind it, maybe a second, put a little bit more money down to get just under the jumbo loan limit for your particular area, because the interest rate is going to be typically more advantageous for you to do so. So that’s jumbo loan. And I hope that you’re buying a house with the jumbo loan, or maybe not. Maybe you have so much money that you don’t have to worry about a loan. That’d be great.