How to Understand Jumbo Loans
Some jumbo loans (mortgages that exceed government limits) are easier and cheaper to get than others.
The Wall Street Journal wrote a guide for how to save with smaller jumbos. A brief glossary includes the difference between conforming mortgages (“capped at $417,000 and backed by government agencies”) and conforming jumbo mortgages (“exceed $417,000 and can go up to $625,500—the exact limit depends on housing costs in your area”).
The article also says that when choosing between a conforming and a non-agency jumbo loan, keep in mind mortgage insurance, lender restrictions, and bonuses available for veterans.
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