What's 'Jumbo' Could Change

By Dave Fratello | July 26th, 2011
Kaye Thomas notes with some chagrin that the "conforming loan" limit will soon slide backwards from $729,750 to $650,000.

If you're looking to get a mortgage near either threshold, you could be shifting to "jumbo" loans after the change.

This shift will affect buyers in lots of higher-priced markets nationwide, including MB, though the current max represents 80% of a purchase of just $900k. That means plenty of buyers locally who want to put about 20% down have been stuck, pretty much all along, with only jumbo loans as an option.

Kaye says, with some urgency, that if you own now and want to refi, "DO IT NOW!" (She is trying to scream.) Documents filled out after Aug. 15 may not be processed in time to meet the Oct. 1, 2011, deadline.

We're going to wonder more here about bigger-picture issues like the economy, the bizarre debt-limit standoff in D.C., and any number of factors that could influence housing prices in MB. The near term is cloudy at best (just look at the sky on an average Summer day), but the definition of "jumbo" isn't a major factor – do you agree?

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