These terms reflect the two types of loan products in the mortgage industry. Conforming loans are simply all mortgage loans in the amount of $417,000 or less. All loan amounts over $417,000 are called Jumbo loans. Both Jumbo and Conforming loans have similar 30-year and 15-year fixed rate programs.
Conforming loan programs generally have lower interest rates than Jumbo loans. Therefore, if you have a Jumbo loan with an existing mortgage balance slightly higher than $417,000, you should consider paying down your loan balance to qualify for a Conforming loan.
Note:
The Conforming loan limit was raised in January, 2006 from $359,600 to $417,000. If your existing mortgage is a "Jumbo" loan between $359,600 to $417,000, you should consider refinancing with a Conforming loan.
