A jumbo mortgage is a home loan that is larger than the conforming loan limit set by the U.S. government, which is currently $647,200 in most areas of the U.S.
Every year the U.S. government sets a limit on the dollar amount for a conforming loan that they are willing to guarantee. Home loans below the limit are called conforming mortgages. Home loans above the conforming loan limit are called jumbo mortgages.
A jumbo mortgage can have a fixed rate or an adjustable rate. A 30-year jumbo mortgage will have a loan term of 30 years. Other jumbo loan options are available.