Could it really be true? The bill to provide the jumbo conforming loans (also known as “agency high”) gave us the promise of a loan limit of $729,500 for high cost areas like San Francisco. But even though it was promised to us in February, we weren’t seeing lenders providing the loans promised to consumers!
But, the rumor is, IT’S HERE!!!
From the California Association of Realtors:
Rates on bigger mortgages finally should come down 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 onefourth 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.
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