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Fannie and Freddie limit to drop to $625,500 in October

Among those borrowers choosing adjustable-rate mortgages are buyers of property costing more than the $729,750 limit at which Fannie Mae and Freddie Mac will buy back loans from lenders, said Mary Boudreau, the owner of Penfield Financial, a mortgage broker in Fairfield, Conn. (Without the government buyback, fewer lenders are willing to make these "jumbo" loans, which carry interest rates one or two points above those of conventional loans. The Fannie and Freddie limit is set to drop to $625,500 in October.)

More Borrowers Are Opting for Adjustable-Rate Mortgages
Published: March 17, 2011
This time around, mortgage experts say, lenders are offering more conservative ARM products, without the gimmicky "teaser" rates and features.


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