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Conforming Loan Limits Increased to $359,650


Conforming Mortgage Limits Raised
The Federal National Mortgage Association, Fannie Mae, and the Federal Home
Mortgage Corporation, Freddie Mac, are government sponsored enterprises that are
privately held by shareholders but backed by the U.S. government.

They were established to provide banks with federal money to finance home mortgages
to raise levels of home ownership and affordable housing.

Because of government backing, they can borrow at low interest then provide fixed rate
mortgages with low down payments to home buyers. Fannie Mae and Freddie Mac
control 90% of the nation's secondary mortgage market. Their combined assets are
45% bigger than that Citicorp, the country's largest bank. Reflecting the steady rise in
the median cost of housing in the U.S., each year Fannie and Freddie set the ceilings in
what they consider conforming loans. Because they buy only conforming loans the
demand for larger mortgages is far less. These jumbo loans carry higher interest rates.
For 2006, in the contiguous 48 states, the new conforming loan cut off has been set at
$417,000 for a single unit home. Other limits have been raised as well. This is more
than good news for new home buyers. This is a great opportunity to see how much
interest you can now save by consolidating previously borrowed "piggy back" or home
equity loans. You might be able to convert a jumbo loan as well.

Even though home prices are expected to keep rising throughout 2006, these
conforming loan limits are locked for the entire year, so the best time to act is when our
calendars are new.


America's Mortgage Store, Inc.
8436 East Shea Suite 100
Scottsdale, AZ 85260



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