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For those of you who haven’t already heard the news, today Freddie Mac reached an agreement with Wells Fargo, Citibank, Washington Mutual and JPMorgan Chase to purchase mortgages up to $730,000 in some areas. What does this mean for you?

Traditionally, homes loans above $417,000 were considered jumbo, and were not backed by government-sponsored programs, including Freddie Mac. This resulted in these types of loans being much harder to get in today’s market, and when they were available, it was generally at a higher interest rate. With today’s news, it means those looking to purchase new homes or refinance existing mortgages on the higher end should be able to do so with greater ease.

With the average home price in many areas well exceeding the traditional $417k amount, many homeowners were faced with fewer loan options, which has added to the slow-down in home sales across the U.S. For example, in California where house values are declining at some of the greatest rates, the median home value is over $450k with many areas reaching the $1 million median home value mark. By opening up new options to these homeowners, many may now be able to refinance their existing mortgages or sell their homes that may have been on the market for months.

See a complete list of eligible areas and new loan limits.

If you are in need of a mortgage, the Zillow Mortgage Marketplace offers a no-hassle process in which borrowers are anonymous — no name, address, phone number or Social Security number is required. It’s pretty easy and relaxing to get your hands on real loan quotes without having to give up your personal info. Give it a try. Maybe the jumbo loan quote of your dreams is waiting to be found…

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