Jumbo Loan Mortgage Calculator
Cost Breakdown Chart
What You Should Know
- This Jumbo Loan Calculator allows an individual to assess their eligibility for the loan as well as estimate their monthly payments and the total cost of the loan.
- Jumbo Loans are non-conforming mortgage loans with a principal amount larger than the conforming loan limits set by Fannie Mae and Freddie Mac.
- Conforming loan limits are set to $647,200 for most counties in the US, but they can also reach $970,800 for some high-cost counties that surround expensive metropolitan areas.
What Is a Jumbo Loan?
A jumbo loan is a non-conforming mortgage loan, which means that it does not conform to the standards set by Freddie Mac and Fannie Mae. More specifically, jumbo loans have a principal that is larger than the conforming loan limits, which makes them ineligible for sale to Freddie Mac and Fannie Mae. Since jumbo loans cannot be easily sold to the secondary market, lenders are often more cautious about these loans. Lenders tend to set a higher interest rate and more strict eligibility requirements for jumbo loans to minimize the risk of default. In addition to that, the lenders may require private mortgage insurance for borrowers who contribute less than 20% down payment or borrowers who may be deemed high risk.
2022 Conforming Loan Limit Chart by Area and Number of Units
| Area Limits | One-Unit Limit | Two-Unit Limit | Three-Unit Limit | Four-Unit Limit |
|---|---|---|---|---|
| Low-Cost Area Limit | $647,200 | $828,700 | $1,001,650 | $1,244,850 |
| High-Cost Area Limit | $970,800 | $1,243,050 | $1,502,475 | $1,867,275 |
| Area Limits | One-Unit Limit | Two-Unit Limit |
|---|---|---|
| Low-Cost Area Limit | $647,200 | $828,700 |
| High-Cost Area Limit | $970,800 | $1,243,050 |
| Area Limits | Three-Unit Limit | Four-Unit Limit |
|---|---|---|
| Low-Cost Area Limit | $1,001,650 | $1,244,850 |
| High-Cost Area Limit | $1,502,475 | $1,867,275 |
About This Jumbo Loan Calculator
This jumbo loan calculator allows a borrower to estimate whether they are eligible to get a jumbo loan and estimate how much they would have to pay for the loan in monthly payments as well as how much the loan would cost them including total principal and interest paid. This section provides information about how this calculator works, and how to interpret the results of the calculator.
Jumbo Loan Calculator Inputs
There are only 5 inputs needed to estimate the eligibility and cost of a jumbo loan. It is important to note that the eligibility requirements may vary depending on the lender and the borrower, which means that a borrower may be eligible for a jumbo loan even if this calculator states otherwise. It is best to talk to the lender about specific eligibility requirements to ensure that you are eligible for a jumbo loan. The following inputs are needed to assess the eligibility and estimate the cost of a jumbo loan.
- Home Price: The price at which the house is being purchased. If you choose to have a no-closing-cost mortgage, you should also add closing costs to this value for a more precise calculation.
- Mortgage Down Payment: The down payment you contribute towards the mortgage on the property. The minimum down payment required for jumbo loans is 10% of the home price, but some lenders may require a down payment of 20% or even 30%.
- Mortgage Rate: The interest rate charged on the jumbo loan. Even though you may not know the exact interest rate you will be charged until you get the loan, you can still approximate this value. A good way to learn what interest rate you may be charged is to get a mortgage pre-approval letter, which contains all information about the loan a lender is willing to offer for you.
- Mortgage Term: The number of years you will be paying off the mortgage. It is an important metric because it will affect your monthly mortgage payments and the amount of interest accrued over the lifetime of your mortgage. As a rule of thumb, the longer the mortgage term, the smaller the monthly payments but the more expensive the total cost of the loan.
- Credit Score (FICO): This metric refers to your credit score. This metric allows the lenders to determine your eligibility for the jumbo loan as well as estimate the minimum down payment requirement for your loan. It is important to note that you may not be eligible for a jumbo loan if your score is less than 680.
Jumbo Loan Calculator Results
The calculator provides multiple results that are important to understanding how to structure your loan to fit your financial needs the most. The results calculated based on the inputs assume that the inputs are accurate, and they do not account for any taxes or insurance costs associated with buying a house and getting a jumbo loan. It could be the case that a lender may require a borrower to get private mortgage insurance if the borrower contributes a down payment of less than 20%. The following results are calculated based on the inputs a borrower provides about the jumbo loan.
- Your Monthly Payment: The amount you have to pay monthly throughout the term of the loan. It is important to note that a borrower may lower their monthly payment by increasing the mortgage term, but it will likely increase the total cost of the mortgage.
- Total Mortgage Cost: The total amount you will pay throughout the term of the loan. Unlike monthly mortgage payments, the total mortgage cost will increase with the loan term increasing.
- Cost Breakdown Chart: This chart provides details about how much you will pay in interest and in principal over the lifetime of your mortgage. The longer the mortgage term, the higher the total interest payment will be while the principal payment will stay unchanged.