There is a rumor going around in the mortgage industry that there is legislation being proposed to temporarily increase the conforming loan limit to $625,500 in an effort to ease the burden of tigher credit on consumers and help the housing industry rebound in 2008.
This is good news if you owe between $417,000 and $625,500 on your home or know someone who does.
The conforming loan limit currently sits at $417,000. Anything above $417,000 is considered "jumbo." Jumbo rates currently are about 1% higher than conforming rates.
In other words, if you owe between $417,000 and $625,500, you will have an opportunity to take advantage of the much-lower conforming rates available today- an effective 1% rate reduction.
I will continue to post updates on this important topic as it becomes available.