Real Estate Insights

“On February 13, 2008, President Bush signed the Economic Stimulus Act of 2008 (the "Act") into law.” What does this mean for you?

I am glad to inform you that as of last week our government has finally approved and passed a temporary increase to the conforming loan limit from $417,000 to $729,750, BUT…it could take another month or so before we may see this become reality. The branch of the government given the responsibility for determining the increases has been given a deadline of 30 days to figure out the new loan limits according to their respective metropolitan areas. Then it will take some additional time for lenders to implement the new loan amounts into their mortgage product offerings.

These newly increased loan limits mean that you will have a “temporary” opportunity to refinance your current jumbo loans, or consolidate a first and second loan combination, into a new loan amount up to $729,750 at conforming loan interest rates! Possible benefits could be lowered interest rates of up to 2% or more below the current “Jumbo” loan rates offered. That kind of reduction in interest rate could add up to almost $1,000 in monthly savings over your current mortgage payments!!

But, with such a profound change in the mortgage industry there will surely be a huge surge in demand for refinancing when these new increased limits get introduced. And, if you are considering a refinance or purchase, with interest rates below 6% for both short term and long term fixed rates now is still an excellent time to purchase or refinance.

Call me so we can discuss your particular real estate financing situation and start processing your loan application. And if you’re already approved, Interest rates currently offered are still some of the lowest we have seen in the past 4 years!