January 25, 2008 :: Jeffrey T. Smith

Conforming Loan Limit Increasing to $625,500 - What does it mean?

It means easier mortgage qualifying, lower interest rates relative to current jumbo rates and more buyers able to qualify for larger loans. Although the White House and congress appear to have agreed upon the economic stimulus package that includes the increase in conforming loan limits through the end of 2008, it still has to be voted into law. For the Bay Area, this should be a unique opportunity for many homeowners to lower their current interest rate, and/or lower their mortgage payment and/or stabilize their mortgage.
“This will have a big, immediate impact, especially in California where sales have been down most significantly,” said Lawrence Yun, chief economist for the National Association of Realtors.