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Act before jumbo loan limits fall

Jumbo Loan Limits

Refinance now or lose your chance to grab a lower mortgage rate. That's the situation that homeowners face in the country's biggest, most expensive real estate markets.Fannie Mae and Freddie Mac buy most mortgages, but they won't buy home loans above certain dollar amounts. Those loan limits will be reduced at the end of September in expensive housing markets. Some homeowners will be squeezed by the lowered loan limits. If these unlucky homeowners try to refi after Sept. 30, they will discover that they'll have to get jumbo loans with higher rates and fees and less availability.The changes will affect refinancers and home purchasers in hundreds of high-cost counties. Bankrate.com will walk you through the maze of "conforming" and "jumbo-conforming" mortgages to help you figure out whether the decreased limits will affect you, and help you decide what to do.