Where is the risk that is anymore then a conforming loan? Yes, it's a higher loan amount but is it not more interest over time for the lender based on the higher loan amount. Shouldn't the risk be based on the borrower and their ability to pay. It just seems that I should not get hit with this extra cost. Currently, I could get a 4.75% rate that will cost 2 pts. That same rate for a conforming loan is half the cost. Thanks for any input.