What is a jumbo loan?

A jumbo loan is a mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency (FHFA). For 2024, the baseline conforming limit is $766,550 for most U.S. counties; high-cost areas (San Francisco, NYC, Los Angeles) have higher limits up to $1,149,825. Jumbo loans are non-conforming because they cannot be purchased by Fannie Mae or Freddie Mac, so lenders keep them on their own books.

What credit score do I need for a jumbo loan?

Most jumbo lenders require a minimum FICO of 700, with 740+ qualifying for the best rates. Some lenders go as low as 680 for well-qualified borrowers with strong reserves and low DTI. Below 700, expect higher rates or a declined application. Jumbo underwriting is holistic: lenders look at credit score, reserves, income, DTI, and asset verification all together.

How much down payment do I need for a jumbo loan?

Most jumbo lenders require 10%–20% down, with 20% being the sweet spot for the best rates. Loans above $1M often require 20%+ down; loans above $2M may require 25%–30%. Some portfolio lenders offer 5%–10% down jumbos for high-net-worth borrowers with strong reserves and credit, but at higher rates.

Are jumbo loan rates higher than conforming rates?

Jumbo rates are typically 0.25%–0.5% higher than conforming rates because lenders can't sell jumbo loans to Fannie/Freddie. The spread varies with market conditions: in low-rate environments, the spread narrows; in high-rate or volatile environments, it widens. On a $1M loan, a 0.25% rate difference = $2,500/year in additional interest, or $75,000 over 30 years.

How many months of reserves do I need for a jumbo?

Most jumbo lenders require 6–12 months of mortgage payments in liquid reserves (savings, checking, brokerage) after closing. For loans above $1.5M, expect 12+ months. The reserves must be verified with bank statements and brokerage statements. Gifts and down-payment assistance typically don't count toward reserves.

What is the debt-to-income (DTI) limit for a jumbo loan?

Most jumbo lenders cap DTI at 36%–43%, with 36% being the conservative benchmark. Some portfolio lenders allow DTI up to 50% for high-net-worth borrowers with strong compensating factors (high income, large reserves, low LTV). For comparison, conforming loans typically allow DTI up to 50% with compensating factors.

What is the difference between a jumbo and a conforming loan?

Conforming loans meet Fannie Mae and Freddie Mac guidelines (loan amount, credit, DTI, LTV) and can be sold on the secondary mortgage market. Jumbo loans exceed the conforming loan limit and cannot be sold to Fannie/Freddie, so lenders keep them in their own portfolios. Conforming loans have lower rates and easier qualification; jumbo loans have stricter qualification but more flexibility in underwriting.

Should I get a jumbo loan or a conforming loan with a piggyback?

If your loan amount is just above the conforming limit (e.g., $800,000 against a $766,550 limit), consider a piggyback: a first mortgage at the conforming limit ($766,550) plus a second mortgage (HELOC or HELOAN) for the remaining $33,450. The combined rate may be lower than a single jumbo, but you'll have two loans to manage and a HELOC has variable rates.

Jumbo Loan Calculator

A jumbo loan calculator is a free online tool that calculates payments for jumbo (non-conforming) loans exceeding conforming limits. It shows monthly payment, total interest, LTV, and how your loan compares to the conforming baseline. Free, no sign-up required.

Jumbo Loan Details

Home Price?The purchase price of the home you're considering buying.

Down Payment

Interest Rate?The annual interest rate on your mortgage loan.

Loan Term?The length of your mortgage in years. Common terms are 15 or 30 years.

Property Tax Rate?The annual property tax rate as a percentage of home value.

Home Insurance?Annual homeowners insurance premium.

HOA Fees?Monthly homeowners association (HOA) fees, if applicable.

End of inputs

Jumbo Loan Results

Monthly Payment

$5,661.58

Total / month

Loan Amount

$720,000.00

LTV 80.00%

Total Interest

$961,163.28

Over 30 years

Conforming Limit

$766,550.00

2024 baseline

Jumbo Amount

$0.00

Above conforming

Down Payment

$180,000.00

20.00%

Loan vs. Conforming Limit

Monthly Payment Breakdown

Amortization Schedule

Month	Principal	Interest	Balance

360 months · Showing 0 rows

Key Insights

Your 20.00% down payment is strong — above the typical 10%–20% for jumbo loans. At an LTV of 80.00%, you should receive the best jumbo rates and avoid PMI. A 20%+ down payment is the sweet spot for jumbo qualification.

Your 6.75% rate is typical for a jumbo loan in 2026. Jumbo rates are usually 0.25%–0.5% higher than conforming rates because lenders can't sell jumbo loans to Fannie/Freddie. Shopping 3–5 lenders can save 0.125%–0.25% (≈$16,200.00 over 30 years).

Your total interest of $961,163.28 is 133.49% of the loan — high because of the long term and large balance. Over 30 years, you'll pay more in interest than the original loan. Consider a 15-year jumbo (rate ~0.5% lower, total interest cut in half) if your cash flow allows higher monthly payments.

Your LTV of 80.00% is strong — at or below the 80% threshold most jumbo lenders prefer. You should qualify for the best jumbo rates and avoid any lender-paid mortgage insurance (which is rare but possible at higher LTVs).

Your $720,000.00 loan is at or below the $766,550.00 conforming limit, so it qualifies for a conforming loan — not a jumbo. Conforming loans have lower rates, smaller down-payment options (3%–5% available), and easier qualification. Consider a conforming loan if your purchase price allows it.

Jumbo loan: Loans above the $766,550.00 conforming limit are not eligible for purchase by Fannie Mae or Freddie Mac. Expect stricter qualification (typically 700+ FICO, 6–12 months reserves, lower DTI) and rates 0.25%–0.5% above conforming loans.

Guide

How to Use This Calculator

1Enter the home price in the Home Price field. Jumbo loans typically start at amounts above $766,550 (2024 conforming limit).
2Set the down payment. Most jumbo lenders require 10%–20% down; loans above $1M often require 20%+. Use the $ / % toggle to switch between dollar and percentage.
3Enter the interest rate. Jumbo rates are typically 0.25%–0.5% higher than conforming rates.
4Choose the loan term (15, 20, or 30 years are most common; 30 years maximizes cash flow, 15 years saves interest).
5Set the property tax rate, annual home insurance, and any HOA fees for a complete payment picture.
6Review the loan amount, LTV, conforming-limit comparison, and AI insights to verify the deal pencils out for jumbo underwriting.

Formula

How It's Calculated

Jumbo loans use the same amortization formula as conforming loans:

M = P × [r(1+r)^n] / [(1+r)^n − 1]

Where:
- M = monthly payment (principal + interest)
- P = loan amount (price − down payment)
- r = monthly interest rate (annual rate ÷ 12)
- n = total number of payments (years × 12)

The jumbo amount (the non-conforming portion) is:
  jumboAmount = max(0, loanAmount − conformingLimit)

The 2024 conforming loan limit is $766,550 for most U.S. counties
(higher in designated high-cost areas, up to $1,149,825).

Example: $1,200,000 home, 20% down ($240,000), 6.75% rate, 30 years
  Loan amount = $960,000
  Conforming limit = $766,550
  Jumbo amount = $193,450 (the non-conforming portion)
  Monthly P&I = $6,219 (at 6.75%/30y)
  Total interest = $1,278,840 (over 30 years)
  LTV = 80%

Glossary

Key Terms

FAQ

Frequently Asked Questions

Related Calculators

Mortgage Calculator

Calculate your monthly mortgage payment with PMI, taxes, insurance, and HOA. See the full amortization schedule.

Refinance Calculator

Compare your current mortgage with a refinance offer. See monthly savings, break-even point, and net savings.

Affordability Calculator

Find out how much house you can afford based on your income, debts, down payment, and the 28/36 rule.