Nov 11 2010

Loan Limits Extended

Published by at 8:39 am under General Information

President Obama has signed legislation that extends the conforming Loan Limits.  In most pasts of the country, this limit will now still be $417,000. In select high-cost states it will be as high as $$729,500.  The higher conforming loan limits are important to the housing recovery as the interest charged on those loans averages considerably below that of Jumbo non-conforming loans. 

The provision means homebuyers and homeowners in expensive housing markets will continue to get a break on interest rates when they buy or refinance. Conforming loans come with cheaper rates than non-conforming or so called “jumbo” mortgages, because they are backed by the government.

On October 26, reported the average rate for 30-year, non-conforming jumbo loans  came in at an average 5.14 percent. Meanwhile, conforming loan rates averaged 4.45 percent.

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