Congress approved an economic Stimulus plan that should benefit those trying to sell their homes in high prices areas. The increase in Fannie Mae and Freddie Mac limits from the present limit to as high as $729,750 will enable homeowners to save on their mortgages.
The combined ease of the approval process and the nearly 1 percent lower interest rate should stimulate homes sales across the country.
The stimulus package temporarily raises the maximum size of mortgages that government-sponsored mortgage companies Fannie Mae and Freddie Mac can purchase and market as securities from $417,000 to as high as $729,750 in expensive parts of the country such as New York and California.
It makes a similar change for loans backed by the Federal Housing Administration, a government agency that insures loans to borrowers with poor credit.
The interest-rate gap between “jumbo” loans above the $417,000 limit and “conforming” loans below it has been stubbornly high for months. Last week it was close to a full percentage point, compared with 0.2 percentage point in July, according to financial publisher HSH Associates. via The Associated Press
No related posts.
{ 8 comments… read them below or add one }
It does not make sense to only help people in high price areas what are they trying to say or are they trying to lower the risk factor
The "intent" is for this to be temporary, and we all keep using that terminology on our blogs… but many congressional issues intended to be temporary, are never reversed. Don't you think this will be the same?
I have believed that the Jumbo cap should have been higher a long time ago. It’s too bad the politicians wait until the problem is really bad to fix it.
any one know when the fha increase to 417,000 will take effect.
I also want to know when the FHA increase will take effect.
I'm trying to understand the tax credit for first time home buyers. I bought my home on March 30, 2008 and it appears that I am not eligible for the stimulus package tax credit because I "missed" it by a week?
Where do I turn for more information or to see if there is some "wiggle" room here to allow me to apply.
I purchased my home the first week of April 2008 so I only missed the cutoff by a few days. Is there anything I can do to see if I can qualify?
I think that the stimulus package have helped a lot in restoring the economy. right now we can see some improvements in the economy. right now we can see some improvements in the eco`':