A jumbo mortgage is a mortgage loan which is larger than the limits set by Fannie Mae and Freddie. Since these two agencies will not purchase these types of loans, they usually carry a higher interest rate (to enhance their value and marketability to investors).

2006 Single-Family Mortgage Loan Limits

Single-Family Mortgage Loan Limits effective January 1, 2006:

First mortgages

• One-family loans: $417,000
• Two-family loans: $533,850
• Three-family loans: $645,300
• Four-family loans: $801,950

Note: One- to four- family mortgages in Alaska, Hawaii, Guam, and the U.S. Virgin Islands are 50 percent higher than the limits for the rest of the country.

Second mortgages

• $208,500
• In Alaska, Hawaii, Guam, and the U.S. Virgin Islands: $312,750

Click here for a list Historical List of Loan Limists since 1980 (will open in ned window [pdf]).