Introduction
A jumbo loan is a home loan that is too big to follow normal loan rules. In most of the country, a loan is jumbo when it goes over $806,500. In Alaska and Hawaii, the line is $1,209,750. Loans under those limits are called conforming loans.
This jumbo loan calculator shows what a big mortgage will really cost you. Type in the home price, your down payment, the interest rate, and the loan term. The tool tells you right away if your loan is jumbo or conforming, and what you would pay each month. For a standard-sized loan, use our Mortgage Calculator instead.
You will also see:
- Your monthly principal and interest payment
- Total interest and total cost over the life of the loan
- Your APR after discount points and lender fees
- How long it takes for buying points to pay off (break-even)
- A full amortization schedule by year or by month
- How much time and interest you save with extra payments
You can compare two loans side by side, like a 30-year loan with points against a 15-year loan without them. It works for buying a home and for refinancing one you already own. Every answer comes with a step-by-step math breakdown, so you can see how the numbers were found.
Keep in mind: these numbers cover principal and interest only. Property taxes, home insurance, HOA dues, and PMI are not included, so your real bill will be higher. To see the full monthly picture, try the PITI Calculator.
How to use our Jumbo Loan Calculator
Enter your home price, loan amount, interest rate, points, and loan term, and the calculator shows your monthly principal and interest payment, your APR, total interest, whether the loan is jumbo or conforming, and a full amortization schedule. You can fill in two scenarios and compare them side by side.
Loan Purpose: Pick Purchase if you are buying a home. Pick Refinance if you are replacing a loan you already have. The field labels change to match. If you are pulling cash out, see the Cash Out Refinance Calculator.
Is the property located in Alaska or Hawaii? Turn this on for Alaska or Hawaii homes to use the $1,209,750 high-cost limit. Leave it off to use the $806,500 standard conforming loan limit.
Home Price: Type the price you are paying for the home. In refinance mode, type the appraised value of your home. Not sure what price fits your income? Check the Home Affordability Calculator.
Loan Amount: This fills in on its own (price minus down payment), but you can type your own jumbo loan amount. Anything above the conforming limit counts as a jumbo loan.
Down Payment ($): Type the cash you are putting down. In refinance mode, type the equity you are keeping in the home. The Down Payment Calculator can help you set a target.
Down Payment (%): Or type your down payment as a percent of the price. The dollar and percent boxes update each other. Under 20% may mean you owe PMI, and it raises your loan-to-value ratio.
Interest Rate: Type the yearly fixed rate your lender quoted, like 6.5. Compare quotes with the Mortgage Rate Calculator.
Discount Points: Type how many points you want to buy. One point costs 1% of the loan at closing and cuts your rate by about 0.25%. Use 0 if you buy none. Points are one of several closing costs you pay up front.
Loan Term: Type how long the loan lasts and pick Years or Months. You can also tap the 15-Year or 30-Year button.
Scenario B: Fill in the same fields with a second option, like a shorter term or a lower rate. The compare table shows the difference in payment, interest, and APR.
Prepayment Type: Choose Monthly, Yearly, or One-Time to add extra payments to Scenario A. Choose None to skip this. See also the Biweekly Mortgage Calculator for another way to pay down faster.
Extra Payment Amount: Type how much extra you will pay toward principal each time.
Start With Payment #: Type the payment number when the extra money starts. Use 0 for a lump sum paid before your first payment. A large lump sum may also qualify for a mortgage recast.
Schedule View: Pick Annual View for a year-by-year summary or Monthly View to see every payment. For a deeper look, open the Mortgage Amortization Calculator.
Press Calculate to update your results, or Reset to start over.
What Is a Jumbo Loan?
A jumbo loan is a home loan that is too big to follow the normal rules set by Fannie Mae and Freddie Mac. Those two companies buy most home loans from lenders, but only up to a set dollar limit. When you borrow more than that limit, your mortgage is called a jumbo loan (or a non-conforming loan). The lender usually keeps the loan or sells it to private investors instead. Government-backed programs like the VA loan and the FHA loan follow their own separate limits.
Conforming Loan Limits
The limit changes each year and depends on where the home is. For a one-unit home, the numbers used here are:
- $806,500 — standard limit for most of the United States
- $1,209,750 — high-cost limit used in Alaska and Hawaii
What matters is the loan amount, not the price of the house. If you buy a $1,000,000 home and put $250,000 down, you borrow $750,000 — that is still a conforming loan in most areas.
How Jumbo Loans Are Different
Because the lender takes on more risk, jumbo mortgages have stricter rules than regular loans. Most lenders ask for:
- A higher credit score, often 700 or more
- A bigger down payment, usually 10% to 20% or more
- Cash reserves — enough savings to cover several months of payments (see the Emergency Fund Calculator)
- A low debt-to-income ratio, often under 43%
- Strong proof of income, and sometimes a second home appraisal
Rates, Points, and APR
Jumbo rates are sometimes a little higher than conforming rates, and sometimes a little lower, since these loans go to buyers with strong credit. You can also pay discount points to lower your rate. One point costs 1% of the loan and usually cuts the rate by about 0.25%. On a large loan, one point is a lot of money, so it helps to know your break-even point — how many months it takes for the lower payment to pay back the cost of the points. If you sell or refinance before then, the points were not worth it.
The interest rate is just the cost of borrowing. The APR is bigger because it also folds in points and lender fees. APR is the better number to use when you compare offers from different lenders.
What Your Real Payment Includes
Principal and interest is only part of the bill. Your full monthly housing payment also includes property taxes, homeowner's insurance, and any HOA dues. If you put down less than 20%, you may also owe private mortgage insurance (PMI). On a jumbo loan these extra costs can add hundreds or even thousands of dollars each month, so plan for them in your monthly budget.
Ways to Pay Less
Interest adds up fast on a big loan. Three simple moves cut the total cost:
- Put more money down. A larger down payment shrinks the loan and may drop you under the jumbo limit.
- Pick a shorter term. A 15-year loan has a higher monthly payment but far less total interest than a 30-year loan.
- Make extra payments. Any extra dollar goes straight to the principal, which shortens the loan and saves interest — run the numbers in the Mortgage Payoff Calculator.
Still weighing your options? The Rent vs Buy Calculator, the Home Equity Calculator, and the Loan Calculator are useful next steps.