Obama’s 2009 Stimulus Package has come up with happy news for everyone. Its grants, tax credits and loans have lent immense help to needy people – whether they were individuals, family or households. Now this economic Stimulus Package has actually risen up the limit of how large the mortgage can be before it is called as jumbo loan. This limit was earlier $ 417,000. A loan amount below this value could then be refinanced through Fannie Mae & Freddie Mac. It would now be called as the ‘conforming’ loan. These are based on the basis of 100 points. Now this limit has been extended to $ 650,000.

Here are some points how Obama’s Stimulus Package would help you with Jumbo Loan Refinance

With the current credit conditions of the market it was indeed very tough to fund the jumbo loans. Now by rising up the limit the refinance would actually become easier.

In case your mortgage is between $ 417,000 and $ 650,000 it would help you save around 1% peer annum that is $ 4170 to $ 6500 per year in case of jumbo loan refinance.

There are several banks and mortgage companies who are now willing to help the people to get refinance who have taken jumbo loans. Jumbo Loan Refinance packages offer attractive features like fast closings, no private mortgage insurance (PMI), no points, no lender fees, interest only new home loan mortgages, etc.

The other refinance criteria mentioned by Obama in the Stimulus Package 2009 are all applicable in this case as well. For instance, it is not necessary to hold 20% equity share of the home. If the mortgage amount exceeds 105% of the current value of the home, you can apply for jumbo loan refinance.

The rate of interest on jumbo loan refinance has been reduced from 6.5% to 5.16%.

Great stress is being levied on long term jumbo loan refinance that is for 20 – 30 years.

Author: Luke Cambell
Article Source: EzineArticles.com
Provided by: Programmable Pressure Cooker