Will Higher Loan Limits Matter

[hometowngrl53]

Will Higher Loan Limits Matter?
by Peter G. Miller
The huge debate in Washington regarding whether or not conventional loan limits should be raised is over. Those who wanted higher limits won with passage of the new stimulus package, a big deal because higher loan limits mean that big-ticket buyers will be able to get larger loans at less cost.

The conventional loan limit had been $417,000 before the stimulus package was passed. Loans above the limit are regarded as "jumbo" financing, mortgages for which borrowers pay a higher rate of interest

read here http://realtytimes.com/rtpages/20080...gherlimits.htm

[badmomma]

That is a very nice article. I don't think higher limits are going to be doing anyone a favor. The market sucks and foreclosures are on the rise. I am afraid that we will see another repeat of our current market in a couple of years because of this move. Scary.

[thohome]

I agree I don't see where this is a plus for anyone

[hometowngrl53]

The real estate market is a scary place to begin with especially for someone with little or no knowledge of how things work so i dont see how this is going to help the little people cause the loan companys want to deal in major loans for major buys if you are not out there buying a 250,000 dollar home how is the limit going to help the person buying a 40.000 of 50,000 home