Jumbo loans allow some buyers to afford dream or luxury homes with larger, often non-conforming, mortgages at slightly higher interest rates than conventional loans. With fixed-rate jumbo loans, buyers can currently lock in competitive rates and stable monthly payments for years to come.

Jumbo loans generally exceed the limits of conventional, government—backed loans, which tend to be capped. Buyers must typically make a down payment of 20% to qualify for jumbo loans. The benefits of a jumbo loan are that they enable buyers to apply for larger home loans, and they tend to offer more opportunity to negotiate fees and interest.