Jumbo loans are any loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. In the state of Texas, a Jumbo loan is any loan amount over $417,000.
Because these loans cannot be sold to Fannie Mae or Freddie Mac, they normally will have interest rates that are at least 75 basis points higher than loans at $417,000 or below. In other words, if your loan amount was $417,000 and the rate was 5.0%, then a jumbo loan for the best qualified borrower would be 5.75%.
