Conforming loans are backed by Fannie Mae and Freddie Mac, and are typically below $726,525. Nonconforming or "jumbo" loans have higher values and interest rates.

When conforming loan rates are lower. You can determine your savings potential by calculating the "blended rate" of the combined loans. For instance, if you on a $453,100, and 5.0 percent on another $25,000 loan, your blended rate is 4.06 percent. If jumbo rates are higher than this,

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