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the limit each year on the size of a conforming loan based on the October to October changes in mean home price, above which a mortgage is considered a jumbo first alliance mortgage and 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 non-conforming loans 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 first alliance mortgage 1/4 to banking first alliance mortgage
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