Jumbo mortgages are those that exceed the $417,000 (or
$625,500) limit. The limit is set by the government backed
lending agencies, Fannie Mae and Freddie Mac, who
guarantee the loans against default by the borrower.
Typically, jumbo mortgage rates are higher than conforming
rates, traditionally by 0.25 percent or more, because they
have not been eligible for purchase by Fannie or Freddie, and
lenders making such loans would have to portfolio them.

The era of defaults and foreclosures is largely over, for now.
And with home prices rising, even soaring in many areas,
lenders are more confortable with larger loan amounts on
single transactions.
Currently, the conforming rate for a 30 year loan in Southern
California is 4.32 percent. A jumbo loan is currently priced at
4.24 percent. READ MORE.