Fed Loan Limit Rises

Fannie Mae and Freddie Mac have raised mortgage loan limits by 16% This is good news for home buyers.
The raise is up from $359,650 to $417,000. Borrowers will find it easier to qualify and will see a break on interest rates. This is fantastic news for many in the home buying market!
The Los Angeles Daily News states that this raise is the largest we've seen since 1987 when the cap grew by 15%.
While this is a much needed increase, many analyst's here in California feel this increase is not an adequate raise as of October 2005 the median home price is $454,000.

How will this affect you? In January when the increase takes effect you will be able to get a conforming loan up to $417,00 at interest rates generally a quarter to a half point lower than rates on "jumbo" or no-conforming loans.
This is very good news.
For more information on this topic, just send a quick email and I'll have my mortgage professional give you a call.