A jumbo loan takes over for the higher of the conforming or high balance conforming loan limit based on county loan limit availability. Currently jumbo loans are more restrictive for the borrower’s qualifications requiring more money down, higher credit scores and a lower debt to income ratio in some instances.
30-year fixed rate
This is the most common mortgage that homebuyers compare rates to. The rate is good for 360 months (30 years) and is amortized over that time period to payoff.
20-year fixed rate
Typically there is not much difference in rate between the 30-year fixed and the 20-year fixed rate mortgage. This rate is based on 240 months and as the term decreases to pay back, the payment owed increases.
15-year fixed rate
This mortgage will be due in full in 180 months. It will have an even higher payment than the 20-year term.