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Jumbo Loans Still Have High Interest Rates
1/6/2009
While borrowers of conventional fixed mortgages are paying interest in the 5-percent range, jumbo loan borrowers are paying around 7 percent interest.
It's not just an issue for luxury-home buyers. In some high-cost housing areas, jumbo loans are necessary simply because home prices are high, experts say.
The NATIONAL ASSOCIATION OF REALTORS® is pushing for the Federal Reserve to include jumbo loans in its purchases of mortgages and mortgage-backed securities.
Meanwhile, House Financial Services Committee Chairman Barney Frank (D-Mass.) plans to include language in an upcoming economic stimulus bill that would raise conforming loan limits and alter calculations of these limits to take into account real market conditions.
Source: Boston Globe, Jennifer B. McKim (01/05/09)
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