Oct 31 2009

Jumbo Loan?

Published by at 7:02 am under General Information

A Jumbo Loan carries a higher interest rate than a conforming loan.  What does that mean?  A Jumbo is one that exceeds the current Conforming Loan Limits as determined by FHA or FnyMay/FredMc goverment insured loans. 

NAR Lauds Extension of Higher Loan Limits
The NATIONAL ASSOCIATION OF REALTORS® thanked Congress for speedy action in passing a congressional resolution yesterday that would extend the current higher Fannie Mae, Freddie Mac, and FHA loan limits through 2010. The present loan limits would expire at the end of 2009 and revert to previous lower limits.
The resolution would extend the present conventional loan limits for Fannie and Freddie through the 2010 calendar year at 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost areas. The floor for FHA is $271,050; the floor for Fannie Mae and Freddie Mac conforming loan limits is $417,000.  Loans exceeding these amounts are considered Jumbo Loans. 

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