Lower Rates Likely for Jumbo Mortgages

Author:Dina ElBoghdady - Washington Post Staff Writer

Mortgage borrowers in the Washington area and a few other pricey markets may soon be able to tap into cheaper interest rates if they're taking out loans of up to $729,250.

Rep. Barney Frank (D-Mass.) said yesterday that President-elect Barack Obama's economic stimulus package would include a provision to help borrowers with loans up to that amount secure better rates. The $729,250 loan limit would remain in place for the rest of the year if it stays in the package, which has yet to be officially unveiled by the incoming administration or considered by Congress. The package is expected to reach the Hill by mid-February.

"That will be for one year. That will give us this year to work on what ...


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It is better to give a cheaper interest rate so that many people can afford.