Many folks ask me - What is a Jumbo Loan?  For many 300,000 seems like a JUMBO loan - but it's not (just a whole lot of money!).

A Jumbo Loan is :  A mortgage for an amount that exceeds conventional conforming loan limits.  These determine which loans can be bought by Fannie Mae and Freddie Mac, the government-sponsored entities that are the large buyers of residential mortgages.

In 2007, the "Jumbo Loan" amount is a loan for a single-family property that exceeds $417,000, or $625,500 in Alaska, Hawaii, Guam and the Virgin Islands.

These loans that must be sold to investors other than Fannie and Freddie, such as insurance companies and banks.  Because of this Interest Rates are higher on these loans because the risk is higher to the lenders.

Recently; Jumbo Loan Rates were rising at an alarming rate, but have since settled down a bit. Currentl they are averaging .42% higher.