I just wanted to give all of you some information on the Stimulus loans that Fannie Mae and Freddie Mac are doing. I know it can be a little confusing on how it all works. This is it basically:
Any loan that is over $417,000 is typically considered a Jumbo loan and is priced differently. The rates are usually higher. Larger loan-More Risk.
The government approved for the year of 2008 a Stimulus bill that would allow Fannie Mae and Freddie Mac to purchase loans over the conforming limit of $417,000.00. The higher limits were based on State and the counties within those states. Not all counties within the state may have gotten the same higher limit or any change at all.
Here is the web site that will tell you the new Stimulus loan limits per State and County.
https://www.efanniemae.com/sf/refmaterials/loanlimits/jumboconf/xls/loanlimref.xls
The pricing of the Stimulus loans is not the exact same pricing as conforming loans. It is much lower than Jumbo, but still higher than traditional conforming.
For example:
Jumbo 30 year fixed 8.5%
Stimulus 30 year fixed 6.5
Conforming 30 year fixed 6.25
Now You Know!!
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