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House OK's Increase to FNMA and FHLMC Loan Limits

Real Estate Agent with Somerset International
Hallelujah!!  The increase to the loan limits of loans bought or insured by Fannie Mae, Freddie Mac and FHA is great news for consumers!!!  For those homeowners who have existing Home loans and HELOCs which totaled over $417,000, in order to consolidate and refinance, they would be forced into Jumbo loans which have higher interest rates than do the conforming loans!  With the new higher limits $729,750..........these homeowners can now refi into a conforming loan at a Lower Interest rate!!  And............of course, those looking to purchase a home, particularly in markets such as California where the home prices have been greatly pushed up over the past few years, will now be able to get a conforming loan as well!! This comes at a great time when our economy has been adversely affected by the sub prime loans.  With the lower interest rates and the new higher conforming loans.....this just might be a great year for Realtors..............a welcome thought after the 2007 real estate market!!