News Flash | The conforming loan limit raises to $650,000

We have heard rumors that the approved economic stimulus package will have a clause to temporarily raise the conforming loan limit to $650,000 in high cost areas.  This is an amazing opportunity for homeowners to lower their jumbo interest rates to the conforming level.  That should be as much a 1% or more rate drop easily!  This is also a very exciting move because besides lower interest rates, conforming loans are underwritten through Fannie Mae and Freddie Mac’s Automated Underwriting Systems.  These loans would be considered less risk and able to be pooled with other low risk mortgages.  We should see higher Loan to Values, higher Debt Ratio’s, and other more flexible guidelines.  Now is a great time to refinance.