Super Conforming Loan Interest Rate - Los Angeles

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Super Conforming Loan Interest Rate

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Spartan_858
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Posts: 2
Registered: 06-22-2009

Message 1 of 4

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Does anyone have any insights as to whether the federal government will extend the middle-tier interest rate on super comforming loans ($417k to $729k) in high cost areas? If this rate is not extended, loans in this range will jump to the jumbo rates, thereby decreasing affordability for many in high cost coastal areas.

Kudos!

11-04-2009 11:10 AM

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Re: Super Conforming Loan Interest Rate

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1776
Regular Contributor
Posts: 125
Registered: 05-20-2009

Message 2 of 4

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It is extremely likely that it will be continued. The majority of opinions I've read agree.

Kudos!

11-04-2009 11:19 AM

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Re: Super Conforming Loan Interest Rate

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stop_bailouts
Super Contributor
Posts: 505
Registered: 06-16-2009

Message 3 of 4

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I don't know. I hope not. The best way to make houses affordable is to stop meddling in the market and let prices reach equilibrium.

Kudos!

11-04-2009 11:22 AM

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Re: Super Conforming Loan Interest Rate

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LoansbyJW
Redfin Preferred Lender
Posts: 604
Registered: 04-30-2009

Message 4 of 4

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2010 High Cost Area Jumbo Conforming (AKA Super Conforming) loan limits were re-authorized last week. The Fed tells FNMA etc to buy these loans but the Mortgage Backed Securities market and banks set the rates for these loans. I'd expect the current spread of .25 to .125 between $417k and $417k on to $729k to remain.

Thanks for reading,

LoansbyJW

Kudos!

11-04-2009 01:11 PM