Real Estate Question, Revisited

Since writing yesterday's post, I have seen and heard more indicators that the coming stimulus package may include at least two things that would have an impact on yesterday's answer to a Sunnyvale reader. One is the possibility that the package will include lower rates on conforming jumbo loans, and maybe even jumbos. The second is that there is a move to raise the conforming jumbo maximum back up to $729,750, which would eliminate the need for the line of credit the Sunnyvale reader was considering.
By the way, I've been asked about the problems that a longer loan period (40-50 years) might bring. The obvious additional interest paid over the longer term doesn't matter much since most borrowers aren't going to keep the loan that long. The more important feature to consider is that the longer the loan term, the slower the rate of amortization with a fixed rate loan. So when a loan is paid off through a sale or refinance before the end of the loan term, the lender will still get a much bigger check at closing.