Stimulus Package Contains a Huge Windfall For Homeowners

Bay Area howeowners with mortgages in excess of $417,000 could save thousands of dollars per year under the economic stimulus package unveiled Thursday in Washington. By enabling mortgages of up to $729,750 to be guaranteed by the two federal agencies that repurchase home loans, the stimulus package would bring down rates on new jumbo mortgages by 1 percent or more, industry watchers say. That is expected to lead to a wave of refinancing in high-cost areas of the country such as the Bay Area.