Friday, January 25, 2008

Important Update- New Confoming Loan Limits Pending

Part of my service commitment to my customers is to keep you informed of changing conditions and information regarding the home loan marketplace.

Congress could be passing legislation that will actually help you (I know, a shocker!). That legislation could come into effect soon. An article written a couple of days ago suggests that the debate right now is whether a high cost area (California) bump of 150% would be temporary for 1 year, 2 years, or whether it would be permanent. That seems like they are no longer questioning whether or not to increase the $625,500 conforming limit in California, but for how long. The final decision will probably not come down until March, but I thought I would share this with you now.

Who could benefit the most? Anyone who owes between $417,000 and $625,500, and those looking to purchase properties in California. What you will see is the housing market heat up, the stock market improve, and home owners with Jumbo loans refinancing at lower conforming rates. This could save you between .500% to .750% on your interest rate. This could definitely cause a log jam for the mortgage industry, especially since a lot of lenders are running lean. Here’s my suggestion. BE PREPARED and PLAN AHEAD!!! Turn times from application to close could be somewhere between 30 and 45 days. One lender (Citimortgage) has already announced they are only accepting 60 day locks, and the real volume hasn't even begun.
I highly suggest you start getting your paperwork ready so when it hits you will be able to take advantage of today’s rates while they are still low. Remember, the better the STOCK MARKETS do, the worse MORTGAGE RATES become. In fact, mortgage rates have risen .375 to .500 in the last 24 hours! That's how volatile this market currently is. Those who delay may miss out on substantial savings. I was fortunate to lock two clients in yesterday morning at 5.125% on a 30yr fixed with No Points, by the end of the day the going rate was back up to 5.625%! But having said that, Jumbo 30Yr mortgages are still in the mid to high 6's. 6.625% is the going rate today for a Jumbo so you can see the potential savings once this legislation goes into effect.

I am happy to provide a complimentary mortgage evaluation to see how much money you could be saving as a result of this legislation. Contact me today and I will be happy to assist you.
One full month of recent pay stubs
W2’s for the last 2 years
If you are self-employed (last two year of Federal Tax Returns)
Most Recent Bank Statements per account
Most Recent Retirement and Portfolio Statements

Let’s get your file updated and ready to go. Feel free to forward this email to anyone you may know who currently has a Jumbo loan!

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