These terms reflect the two types of loan products in the mortgage industry. Conforming loans are simply all mortgage loans in the amount of $240,000 or less. All loan amounts over $240,000 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 $240,000, you should consider paying down your loan balance to qualify for a Conforming loan.

Note: The Conforming loan limit was raised in January, 1999 from $227,500 to $240,000. If your existing mortgage is a "Jumbo" loan between $227,500 and $240,000, you should consider refinancing with a Conforming loan.