Jun 11, 2019 / Home Equity

What is a Jumbo Loan?

If you’re in the market for a home with a mortgage over the traditional home loan limit of $484,350, you may also be in the market for a jumbo loan. Other than sounding somewhat intimidating, a jumbo loan is different from a traditional home mortgage in several key ways. Here’s everything you need to know about getting a jumbo loan.

Interest Rate

Because jumbo loans are over the conforming loan limit, as defined by Freddie mac “FHLMC” and Fannie Mae “FNMA”, they’re considered riskier for the lender. For this reason, jumbo loans often come with a higher interest rate than traditional loans. However, jumbo loans still come in fixed or variable interest rates, as well as various term options.


It makes sense that applying for a larger loan should come with stricter underwriting and loan approval requirements. Again, jumbo loans are riskier for lenders. With the extra money and risk involved, lenders want to make sure their investment makes good financial sense. Jumbo loan borrowers usually have higher credit scores and a good debt-to-income ratio so they don’t become financially stretched with a large loan amount. Also, while traditional loans usually come with low or no down payment options, jumbo loans will often require at least 10% down.


With a jumbo loan, borrowers can finance the home of their dreams, or even a second home or vacation home, without being restricted by the dollar limits of conforming loans. In other words, jumbo loans are there so borrowers can finance more of a home as well as receive competitive interest rates and flexible loan terms.

The Utah First Difference

At Utah First, we believe you shouldn’t have to pay a jumbo rate for a jumbo loan. We can help you get into the home of your dreams with an interest rate that won’t keep you up at night. If you’re looking into getting a home loan over $484,350, talk with one of our financial experts about getting a much more miniature rate to go with your jumbo loan. Plus, you’ll get lightning-fast loan approval with friendly, local mortgage servicing you’ve come to expect from Utah First.

Visit a Utah First branch or apply for a jumbo loan online.