http://rpc.senate.gov/_files/L47HR5140EconomicGrowthAct01012008SN.pdf

This bill is not only going to stimulate the economy by giving you a cash rebate but its going to raise the FHA and Conforming loan limits.  What does FHA and Conforming Loan Limits mean? Do you really care?  Well in the 2003-2005 the loan limits for a conforming loan were under $359,000 and than in 2006 they raised it to $417,000.   What is conforming?  Conforming is best described this way "Fannie Mae and Freddie Mac each year set criteria on what constitutes a conforming loan. Criteria include debt-to-income ratio limits and documentation requirements. The maximum loan amount is set based on the October-to-October changes in mean home price, above which a mortgage is considered a jumbo loan, and typically has higher rates associated with it. This is because both Fannie Mae and Freddie Mac only buy loans that are conforming, to repackage into the secondary market, making the demand for a non-conforming loan much less. By virtue of the laws of supply and demand, then, it is harder for lenders to sell the loans, thus it would cost more to the consumers (typically 1/4 to 1/2 of a percent.) (Source:http://en.wikipedia.org/wiki/Conforming_loan)." 

So those who received a JUMBO between 2002 and Today are elibible to refinance out of the extra hit to there rate that they received and get into a conforming loan rate.  JUMBO rate are typically range between .50 and 2.0 points higher than normal conforming rate.  For example, if conforming rate on 30 year fix is 5.5% than a JUMBO rate maybe 6.0% on a 30 year fix.  The reason is that the property is a liability to the lender or investor and maybe harder to sell to average home buyer on the market. 

Once this Law passes and it will get ready to refinance into a conforming loan because the new law states, "The bill increases the conforming loan limits (i.e. the maximum value of loans that may bepurchased) for Government-Sponsored Enterprises (GSEs) from $417,000 up to $729,750,and also increases the loan limits for the Federal Housing Administration (FHA) from$362,000 up to $729,750."

If you need a market analysis on your home to find out how much your home is worth today and if you have equity to refinance into the conforming rate please contact me immediatly.  This is going to be a great deal for everyone to save money.