A jumbo loan is any mortgage larger than the conforming limit set by the Federal Housing Finance Agency. For 2026 that limit is $806,500 for a single-family home in most of the country — but in high-cost counties like Los Angeles, San Francisco, and New York it runs as high as $1,209,750. Because Fannie Mae and Freddie Mac can't buy loans over the cap, jumbo financing is held on the lender's own books. That changes everything: stiffer credit standards, bigger down payments, and sometimes a rate that is higher than a conforming loan rather than lower.
| Market | Price | Loan | Monthly (PITI+HOA) | Total Interest | LTV |
|---|---|---|---|---|---|
| Los Angeles, CA | $900,000 | $720,000 | $5,770 | $961,166 | 80% |
| New York, NY | $1,200,000 | $900,000 | $7,789 | $1,147,900 | 75% |
| Austin, TX | $850,000 | $680,000 | $5,804 | $948,661 | 80% |
Taxes, insurance, and HOA shown monthly. The conforming limit for 2026 is $806,500 in baseline counties, up to $1,209,750 in designated high-cost areas — this calculator applies to the portion of the loan above whatever limit governs your county.
Conventional loans are securitized: the lender sells them to Fannie Mae or Freddie Mac and gets its money back within weeks. A jumbo loan stays on the balance sheet, so the lender carries the default risk itself. That default risk is priced three ways:
Historically jumbo rates ran below conforming, because jumbo borrowers default less often. Since 2023 that relationship inverted in many markets: jumbo is often 0.125%–0.375% above conforming. The reason is bank liquidity and balance-sheet capacity, not borrower quality. Always price both a conforming loan at the limit plus a second lien against a full jumbo loan — the blended result occasionally wins.
In designated high-cost counties the FHFA raises the limit — $1,209,750 for 2026 in the most expensive markets. A loan just under that ceiling is still conforming, even though it is well above the baseline cap. Check the FHFA county lookup before assuming you need jumbo financing at all.
⚠️ Important: This calculator estimates the monthly payment on a loan above the conforming limit. It does not include mortgage insurance (rare on jumbo), lender-specific reserve requirements, or closing costs. Conforming limits change annually — verify your county ceiling with the FHFA before relying on the jumbo/conforming distinction.