Jumbo Loan Calculator
Calculate payments for mortgages exceeding conforming loan limits ($766,550+). Jumbo loans require higher credit scores, larger down payments, and more reserves than conventional loans.
Frequently Asked Questions
What is a jumbo loan and when do I need one?
A jumbo loan is a mortgage that exceeds the conforming loan limit set by the Federal Housing Finance Agency (FHFA). In 2024, that limit is $766,550 for most areas (higher in expensive markets like California). If you're buying a home above this price, you'll need a jumbo loan. These loans carry more risk for lenders, so they typically require higher credit scores (700-740+), larger down payments (20-30%), more cash reserves (6-12 months), and stricter debt-to-income ratios (usually 36% or less).
Why are jumbo loan interest rates higher than conventional rates?
Jumbo loan rates are typically 0.25% to 0.75% higher than conforming loan rates because they carry more risk for lenders. These loans can't be sold to Fannie Mae or Freddie Mac, so lenders hold them on their books. The larger loan amounts mean bigger potential losses if you default. Additionally, jumbo borrowers may be more affected by economic downturns, and high-value properties can be harder to sell quickly. However, jumbo rates can sometimes be competitive if you have excellent credit (760+), a large down payment (30%+), and substantial reserves.
How much down payment do I need for a jumbo loan?
Most lenders require at least 20% down for a jumbo loan, but 25-30% is common and will get you better rates. Some lenders offer jumbo loans with 10-15% down, but expect significantly higher interest rates (often 0.5-1.0% higher) and stricter requirements. For loan amounts over $2 million, 30% down is typically the minimum. The larger your down payment, the lower your rate and the easier approval becomes. Unlike conventional loans, jumbo loans almost never allow less than 10% down.
What credit score do I need to qualify for a jumbo loan?
The minimum credit score for a jumbo loan is typically 700, but you'll get much better rates with 740+. Borrowers with 760+ scores may get rates close to conforming loan rates. Below 700, jumbo loans become very difficult to get and expensive. Lenders scrutinize credit history more carefully for jumbo loans—they want to see a long history of on-time payments, low credit utilization (under 30%), and no recent derogatory marks. Even with a 700+ score, a recent bankruptcy, foreclosure, or collections account could disqualify you.
What are cash reserves and why do jumbo loans require them?
Cash reserves are liquid assets (savings, checking, investments) you have after closing, measured in months of mortgage payments. Jumbo loans typically require 6-12 months of reserves, meaning if your total monthly payment is $8,000, you need $48,000-$96,000 in liquid assets remaining after your down payment and closing costs. This requirement ensures you can continue making payments if you lose income. Retirement accounts often count at 60-70% of their value (since there are penalties for early withdrawal). Reserves show lenders you're financially stable beyond just affording the down payment.
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Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.