A mortgage is considered jumbo if the amount exceeds loan-servicing limits set by Fannie Mae and Freddie Mac — currently $510,400 for single-family homes and $765,600 for high-cost counties.

Jumbo mortgages are available for primary residences, second or vacation homes and investment properties, and are also available in a variety of terms, including fixed-rate and adjustable-rate loans. A jumbo loan typically has higher rates, strict underwriting guidelines and require a large down payment than a regular mortgage.