The term Super Jumbo Mortgage is used to describe mortgage loans exceeding $650,000 whereas a Jumbo Mortgage refers to loans which simply surpass Fannie Maes limits for conforming loans.Super jumbo loans may require a bigger down payment and a higher interest rate to offset the risk of the lender.
A super jumbo mortgage loan is also a non-conforming loan because it does not conform to the loan limits set by Fannie Mae (The Federal National Mortgage Association or FNMA) or Freddie Mac (The Federal Home Loan Mortgage Corp. or FHMLC).
Super Jumbo loans are usually used to buy luxury homes.
