A trade group plan could mean the mortgage rates might stay higher than borrowers expect. George DeAnda wants to refinance his $540,000 mortgage. So like many homeowners with so-called jumbo loans, the Yorba Linda resident has been anxiously awaiting new government rules that were expected to make big mortgages more available and less expensive.

A trade group plan could mean the mortgage rates might stay higher than borrowers expect. George DeAnda wants to refinance his $540,000 mortgage. So like many homeowners with so-called jumbo loans, the Yorba Linda resident has been anxiously awaiting new government rules that were expected to make big mortgages more available and less expensive.

A trade group plan could mean the mortgage rates might stay higher than borrowers expect. George DeAnda wants to refinance his $540,000 mortgage. So like many homeowners with so-called jumbo loans, the Yorba Linda resident has been anxiously awaiting new government rules that were expected to make big mortgages more available and less expensive.

As predicted president Bush recently signed the economic stimulus bill into law. And for people in California, this is exciting news. Why? Much lower interest rates are available to someone who has a conforming loan than those who have jumbo loans. [PR.com - February 21, 2008]

WHY STIMULUS MIGHT NOT STIMULATE LOANS Lawmakers hope that raising the limit on "conforming" loans to $729,750 could shave interest rates on what would have been "jumbo" loans, enabling more Americans to buy homes or refinance in costly areas like Silicon Valley.

There is no "mortgage meltdown'' and rates, even for jumbo loans, remain relatively low. But expect greater scrutiny when applying.

There is no "mortgage meltdown'' and rates, even for jumbo loans, remain relatively low. But expect greater scrutiny when applying.

Capital One shuts down its troubled 'jumbo' loan unit, but Washington Mutual reaches out to high-risk borrowers. The mortgage meltdown continued Monday as Countrywide Financial Corp. said it eliminated about 500 jobs in its sub-prime units and a big issuer of "jumbo" loans decided to shut down altogether.

JUMBO LOANS BY COUNTY Percent of Bay Area counties' home purchase loans considered jumbo loans - over $417,000 - from January to June 2007.

JUMBO LOANS BY COUNTY Percent of Bay Area counties' home purchase loans considered jumbo loans - over $417,000 - from January to June 2007.