David is a Chartered Financial Analyst and a senior underwriter specializing in non-conforming (Jumbo) and high-net-worth mortgage products for over 15 years.
This 4-in-1 Jumbo Loan calculator helps you find the missing variable in your high-value mortgage. Enter any three values—Loan Amount, Rate, Term, or Payment—and we will solve for the fourth.
Jumbo Loan Calculator
Jumbo Loan (Amortization) Formulas
i = R / 12 / 100 (Monthly Rate)
n = T * 12 (Number of Months)
Solve for Monthly Payment (M):
M = P * [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Solve for Loan Amount (P):
P = M * [ (1 + i)^n – 1 ] / [ i(1 + i)^n ]
Solve for Term (n):
n = log( M / (M – P*i) ) / log(1 + i)
Solve for Rate (i):
(No direct formula; solved iteratively)
Formula Variables
- (P) Loan Amount: The total amount you are borrowing, which is above the “conforming” limit for your area.
- (R) Annual Rate: The fixed Annual Percentage Rate (APR) for the jumbo loan.
- (T) Loan Term: The length of the loan, typically 15, 20, or 30 years.
- (M) Monthly Payment: The fixed monthly payment (Principal & Interest). This does *not* include taxes, insurance (PITI), or potentially a large down payment.
Related Calculators
- Conventional Loan Calculator
- Mortgage Payment Calculator
- Loan Affordability Calculator
- Debt to Income (DTI) Calculator
What is a Jumbo Loan?
A “jumbo loan” (or “non-conforming” loan) is a mortgage that is too large to be bought, guaranteed, or securitized by Fannie Mae or Freddie Mac. The “conforming loan limit” (the size cutoff) is set by the Federal Housing Finance Agency (FHFA) and varies by county. In 2024, the limit for most of the U.S. is $766,550, but it can be over $1.1 million in designated high-cost areas.
If your required loan amount (P) is *above* this limit, you need a jumbo loan. Because these loans cannot be sold to the GSEs, they are held on the lender’s own books (a “portfolio” loan). This means lenders set their own, often stricter, qualification rules. You will typically need a higher credit score (700+), a lower Debt-to-Income (DTI) ratio, and a larger down payment (often 20-25% or more) compared to a conventional loan.
Interest rates (R) for jumbo loans can sometimes be higher, but they are often very competitive with conventional rates for well-qualified borrowers. This calculator helps you determine the payment (M) for a large loan amount.
How to Calculate a Jumbo Loan Payment (Example)
-
Identify New Loan Variables
You are getting a 30-year fixed jumbo loan after selling your old home.
• Loan Amount (P): $900,000
• Annual Rate (R): 7.25%
• Loan Term (T): 30 years -
Convert to Monthly Terms (i, n)
The formula uses monthly values:
• Monthly Rate (i): 7.25% / 12 / 100 = 0.0060417
• Number of Months (n): 30 years * 12 = 360 -
Choose the Payment Formula
Use the standard formula to solve for Monthly Payment (M):
M = P * [ i(1 + i)^n ] / [ (1 + i)^n – 1 ] -
Calculate the Monthly Payment
Plug in the monthly values:
• Numerator: 0.0060417 * (1 + 0.0060417)^360 = 0.05282
• Denominator: (1 + 0.0060417)^360 – 1 = 7.742
M = $900,000 * [ 0.05282 / 7.742 ]
M = $900,000 * 0.006823 = $6,140.70
Your new monthly P&I payment will be $6,140.70.
Frequently Asked Questions (FAQ)
How do I know if I need a jumbo loan?
You need a jumbo loan if your desired loan amount (P) is higher than the conforming loan limit for your county. You can find these limits on the FHFA website. Your lender will confirm this instantly.
Are jumbo loan rates higher?
Not always. Historically, they were higher, but in recent years they have been very competitive and sometimes even *lower* than conventional rates for borrowers with excellent credit and large cash reserves.
Do I have to pay PMI on a jumbo loan?
Usually, no. Lenders typically avoid PMI by requiring a larger down payment (at least 20%). If you have less than 20%, they may offer a “piggyback” loan (an 80-10-10, for example) instead of requiring PMI.
What are the down payment requirements?
Expect to need at least 20% down. While some lenders offered 10% down jumbo loans in the past, 20-25% down payments are standard, especially as the loan amount (P) increases into the multi-millions.