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Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2

Conforming Loan

Function: noun

The 2009 conforming loan limit is $417,000 and below. Conforming loan limits change annually. The maximum loan amount is determined based on the October-to-October changes in median home price, above which a mortgage is considered a Jumbo Loan. Jumbo loans typically have higher interest rates because Fannie Mae and Freddie Mac only buy loans that are confirming and it is harder for lenders to sell non-conforming loans. The interest rates for Jumbo loans are only roughly .2 to .5% higher than for a conforming loan.

Definition 1:
The 2009 conforming loan limit is $417,000 and below. Conforming loan limits change annually.