Fannie Mae and Freddie Mac recently issued loan underwriting criteria and will start buying loans of up to $729,750 from lenders on May 4, which some industry analysts believe will result in lower rates.
This week, Wells Fargo started offering conforming loans of up to $729,750, and Bank of America will begin offering them by mid-May
Historically, rates on loans higher than $417,000 - often referred to as jumbo conforming loans -- are one-fourth to one-third of a percentage point higher than rates on $417,000 or lower loans.. By Fannie Mae and Freddie Mac agreeing to guarantee loans of up to $729,750, rates on jumbo conforming loans likely will be comparable to the rates offered on loans of $417,000 and lower.
To read the full story at:
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/04/23/BUEL1777HH.DTL&type=realestate
Comments(0)