How the economic stimulus package addresses the mortgage crisis

The ecomomic stimulus package includes a vital, but temporary, increase in the conforming loan limit. This will allow the Federal Housing Administration, as well as Fannie Mae and Freddie Mac, to offer mortgages above the current conforming loan limit of $417,000 to as much as $729,750 in high-cost areas using a formula that considers an area’s median home price. A host of details remain to be worked out, including how the median home price is established.Still -Good News

Senate just passed the Stimulus Bill

With a few minor changes from the Senate we are on our way! The bill should be ratified by the House of Representatives soon and could possibly be on the Presidents desk as early as tomorrow. He is expected to sign it without any delays. Watch for news!
The changes to our loan limits could be extremely helpful to homeowners who are trying to refinance their homes. A huge benefit would also be for potential home buyers who will be able to obtain a loan with a conforming loan rate possibly up to $729k. I understand it will be 125% of the actual median price of a home. This could make a difference in your interest rate of possibly 1%! If you are thinking of buying or refinancing this may be the perfect time for you!