Congresswoman Says Higher Conforming Limits to be Part of Stimulus

San Jose Congresswoman Zoe Lofgren said the return of higher conforming loan limits will be a part of the new stimulus bill floating around Washington.

On January 1, the high cost conforming limit fell from $729,750 to $625,500 in some of the most expensive areas of the country, making it more difficult for certain homeowners to take advantage of the record-low interest rates available at the moment.

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I noted earlier this week that the jumbo to conforming spread was 1.83 percent, up from 1.37 percent a week ago and 0.23 percent last year.

Currently at Wells Fargo, a jumbo 30-year fixed is pricing at 8.00 percent, while a similar conforming mortgage is advertised at 4.75 percent, which obviously can make or break a potential homeowner and those looking to refinance.