As part of the economic stimulus package, HUD has increased conforming loan limits. Why should you care? Any loan that is greater than these limits is called a "jumbo" loan. And "jumbo" loans have higher rates and points than "conforming" loans. So if you presently have, or want to get, a "jumbo" loan, you may want to check and see if the conforming loan limits in your area have increased. You can do this by going to HUD's new Web page. Type in your county, state, and the type of loan you want (FHA, HECM, or Fannie/Freddie). The site will then calculate the new limit for your area.
The rates and terms on these new loans won't be quite as low as the old conforming loans, but they will be much better than the old "jumbo" loans. So it may be worth your while to refinance to a lower rate. Or, if you want to buy a home and need a large loan, this may be just the break that allows you to afford a new house.
But don't wait too long to act. These new limits are only temporary. They expire at the end of 2008 unless Congress agrees to extend them.
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