Fannie Mae Supersizes You
Last week Fannie Mae and Freddie Mac made it easier for buyers in high-priced areas like New York to get big loans or re-fi their existing ones. Limits for federally backed loans in 70 counties across the U.S. have now been raised to $729,750, according to an article in the Wall Street Journal. The move…
Last week Fannie Mae and Freddie Mac made it easier for buyers in high-priced areas like New York to get big loans or re-fi their existing ones. Limits for federally backed loans in 70 counties across the U.S. have now been raised to $729,750, according to an article in the Wall Street Journal. The move is supposed to encourage lenders to to drop rates on jumbo loans (those over $417,000), which have soared above smaller loan amounts in the wake of the credit crunch. The loan-limit increase, however, will be short-lived: It’s set to expire at the end of this year. Still, this should do more to prop up the economy than tax rebate checks.
Fannie, Freddie Loan Limits Raised [WSJ]
Photo by *andrew.
10:44 here. I got most of the info in an article on bankrate.com entitled, “Jumbo-conforming rules could trip up some.”
Interest rates are not the problem. High prices are. This only makes things worse.
11:25 According to 2000 census only 3.4% of households in New York City earn $200,000 or more. I know it’s hard to believe for the masters of the universe on Brownstoner who can talk about what a bargain a $1.2 million dollar house is, but if you can qualify for a $700K mortgage–you’re rich. Even in NYC.
“It also said that you cannot get the new conforming rate if you are taking cash out to pay a helc.”
10:44 – i didn’t see this on the fannie mae website anywhere. where did you see this?
11:15 & 11:28 – why should New Yorkers not enjoy the same enhanced market for their loans that others in the country enjoy? We all pay for it, regardless.
A ‘rich’ guy in Cleveland with a $417,000 mortgage can live in a 4,000 square foot mansion with Fannie/Freddie insurance. Why shouldn’t folks who own houses closer to the median value in NY&Cali enjoy the same?
Good one 11:15
Interesting on how those who complain about government money for affordable housing and stabalized apartments would be crying foul if thier mortgage interest write off was taken away.
Large loans should not get special consideration for interest rates – let free market set the rates. If they can’t afford the higher interest rate they should move to Canarsie or Staten Island or where ever they tell us poor folks to move.
A 700K mortgage hardly qualifies you as “rich” in NYC.
Why is this good news? Not the role of government to subsidize housing for the rich. Provide some Section 8 vouchers, but if you can afford a 700K mortgage, then welfare is not necessary.
Government and Fannie Mae are broke and throwing good money after bad. Lower prices will mean affordability and in the long run a healthier New York economy.
Anyone got any free info links about this subject?
The WSJ article ask you to subscribe and I’m trying to save up for that $1,000,000 condo!