Definition of Jumbo Mortgage:
Jumbo Mortgages in Orange County, California:
A jumbo mortgage is a loan that is above the limits set by the government, also referred to as a non-conforming loan. The cost of a jumbo loan is higher than a conforming loan, so an Orange County borrower can expect a higher interest rate for a jumbo loan. Most of Orange County falls into what is called a “High-Cost Area” which means that this county can support this higher mortgage amount.
Each year, Freddie Mac and Fannie Mae review and set the loan limits for the upcoming year. Through December 31, 2010, the jumbo or super conforming loan limits are on amounts greater than $417,000 up to $625,000 for Orange County, California. These are single-family home mortgage limits; the limits are higher for multi-unit properties (1-4 units).