If the House bills stays in tack as it moves to the Senate for passage, it will allow more subprime mortgage holders to refinance into federally insured loans by raising the limit on Federal Housing Administration loans from $362,000 to as high as $729,750 in expensive areas. Increase the availability of mortgages by providing a one-year boost to the cap on loans that Fannie Mae and Freddie Mac can buy, from $417,000 up to $729,750 in high-cost markets. Our market appears that it would see an increase up to $625,000 for conforming ( non-jumbo ) loans. Conforming loan rates are usually about 1% point less than jumbo loans... This would difinitely be a great boost for the real estate market above $450,000.
Have a great weekend.
CK
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