Conforming Versus Non-Conforming Loans

There are conforming and non-conforming or jumbo loans. The cut off point in dollars from a conforming to a non-conforming loan changes every couple of years. It is currently approximately $333,700. The interest rate on a jumbo loan is generally higher. Loans that meet the guidelines of the government-backed companies such as Freddie Mac and Fannie Mae are termed conventional loans.