A jumbo loan is a mortgage used to finance properties that are too expensive for a conventional conforming loan. The maximum amount for a conforming loan is $766,550 in most counties, as determined by the Federal Housing Finance Agency (FHFA). Home loans that exceed the local conforming loan limit require a jumbo loan.
Jumbo loans are typically available with either a fixed interest rate or an adjustable rate, and they come with a variety of terms.