Do the terms of Jumbo loan rates leave you with jumbo questions? What is a jumbo mortgage, what is it for and who get them. Where did the term jumbo loan come from anyway and are the rates any different than conventional loans?

A jumbo mortgage is just another term for a loan that is larger than what you would consider for a normal loan. Also known as a California loan because of their wide use there years ago to purchase those jumbo homes, they have become know most everywhere due to the recent housing market bubble.

Conventional conforming loans in the $417,000 (or $625,500 in Alaska and Hawaii) as set by Fannie Mae and Freddie Mac are typical loans and jumbo loans are those loans considered above this amount. However, the recent economic stimulus package temporarily increases the conforming limit to $729,750 until December 31, 2008.

The recent run up in housing prices during the now burst bubble created more demand for these types of loans but they also carry higher interest rates. Although rates have declined in step with the market, eligible borrowers have declined as well as these loans have become harder to get. A mortgage interest calculator can help you determine the total cost of these type of loans.

People who have owned their own homes in the past as well as having great credit, assets and a high income bracket are typically those who attempt to get these types of loans.

There are any different types of jumbo loans just as there are with smaller loans. They can be adjustable, fixed rate and hybrids and the loan to value rate can be as high as 100% depending on your financial situation and credit rating. Consequently Jumbo loan rates can vary widely based on what type of loan you are getting.

Loan rates have declined considerably over the years so will you get stuck with a jumbo size interest rate on that jumbo loan. Rates have declined but most likely the answer is still going to be yes. Using a mortgage interest calculator can give you the answer quickly

Running anywhere in the range of .125% to .75% higher than conventional loans, jumbo loan rates can be even high in some circumstances depending on the terms of your loan. For most, these costs are easily absorbed but most people will consider a larger down payment for the better terms of conventional loans.

When considering jumbo loan rates your best bet is to get online and use a free mortgage interest calculator to determine if this type of loan is best for you.

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