Mortgage Blog

Q: I heard that the conforming limit changes to 625K in a
few months. Does this mean that all loans up to 625K would
be considered regular conforming (i.e. same as today's $417K rate)?

A: The temporary high-balance loan limit of $729,750 will
be reduced back to 625k. But 625k loan will still have higher
rate than 417k loan. Dor any loan amounts over 417k will
still be high-balance conforming loan; any loan amounts
over 625k will be Jumbo loans.

And Jumbo loans can not be sold on the secondary market(Freddit
Mac and Fannie Mae). That's why Jumbo loan rates are higher.

Some other borrowers asked why 7/1ARM high-balance rate is much
higher than 5/1ARM high-balance rate. The answer is the same:
7/1ARM high balance rate is not a Fannie Mae program. These
loans can not be sold on the market. Some lender do offer
7/1ARM or 10/1ARM(over 417k loans), but they are portofolio
lenders. They are either insurance companies or banks or private investors.