Over $417k is considered a High Balance conventional mortgage.
The interest rate will be slightly higher than the $417k traditional conventional mortgage.
Both mortgages are sold to Fannie Mae and Freddie Mac.
Jumbo loans (in the Bay Area) are loans in excess of $625k.
These loans are sold to various investors that do exclude Fannie and Freddie.
Thelse loans do not always have higher interest rates. There are some lenders who offer very agresive pricing for these loans.
Where Jumbo loans differ from conventional is in the underwriting process:
-jumbo loans require manual underwriting
-lower debt ratios allowed 43% vs. 45%
-6 months of PITI must remain in accounts when close