What do I think about the possibility of the increased FNMA and FreddieMac loan limits? I think in the short run, it will help people with large loan sizes get lower rates. It will also help those people with big loans get loans easier. However, it will truly not help the little guy.   Those folks that live in areas with high home prices will benefit from being able to get conforming loan guidelines and interest rates for loans possibly up to $725,000. This could save them thousand a year. It will certainly not have an affect on those wallowing in self pity in Georgia or those in grave danger of losing their homes in Kansas. (I just arbitrarily picked those states out of nowhere, so don’t call me from Kansas bitching that I am pointing a finger) No, once again, the government seems to be helping their buddies. The government is also helping my clients. A good number of my clients are in the New York Metro area and have average loans of over $500,000.  This will help them obtain lower rates for mortgage money on purchases as well as refi into lower rates. If passed, the loan amount increase should go from $417,000 to 725,000 for a single family residence. I heard this would happen in March of this year and run through December, 2008 as a test run. After that, they will review and revisit the loan amounts. So, what do I tell my clients that could feel the affects? If you are refinancing, wait to see if the loan amounts will increase in the next 60 days. If you are buying a home, also wait and see. This may help home prices level off and stay steady. Obviously, if you have to close, then you have to close. If you loan amount is still under $417,000, then this does not matter to you. So, once more, we wait for more changes and upheaval in the mortgage industry.  I am simply growing old! –      Dale Siegel