What is a Jumbo Loan?

A jumbo loan is a type of mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). For most U.S. markets, any loan above $766,550 (2024 limit) is considered a jumbo loan and cannot be purchased by Fannie Mae or Freddie Mac.

Because jumbo loans carry more risk for lenders, they typically require stricter qualification criteria, including higher credit scores, larger down payments, and lower debt-to-income ratios.

How to Use This Calculator

Step 1: Enter the home price and your intended down payment amount.

Step 2: Input the interest rate and select your loan term.

Step 3: Optionally add annual property tax and insurance for a full payment picture.

Step 4: Choose your loan type — Fixed, 5/1 ARM, or 7/1 ARM.

Step 5: Click Calculate to see your monthly payment, total cost, and cost breakdown.

Jumbo Loan Requirements

• Minimum credit score of 700–720 (often higher for larger loans)
• Down payment of at least 10–20% of the purchase price
• Debt-to-income (DTI) ratio typically below 43%
• Cash reserves covering 6–12 months of payments
• Full income and asset documentation required

Fixed vs. ARM Jumbo Loans

A fixed-rate jumbo loan locks your interest rate for the entire loan term, providing predictable payments. A 5/1 or 7/1 ARM offers a lower initial rate for 5 or 7 years, after which it adjusts annually based on market conditions — suitable if you plan to sell or refinance before the adjustment period.