February 13, 2008
The bill signed by President Bush should lead to cheaper loans on more expensive homes.
Q. Why does the bill say the new limit applies to loans made since July 1, 2007? Does that mean I get a rebate on my loan if it was made between now and then?
A. Probably not, said Raphael Bostic, a professor of real estate with the University of Southern California. He said that language in the bill is targeted at banks, which have been holding jumbo loans on their books since the credit crunch hit last summer. He said banks now should find it easier to sell those loans and that, in turn, will make it easier for them to make new ones.