In April of 2008 FHA expanded the maximum loan limit up to $729,000. This covered much of Maryland, and all of DC and Northern Virginia. Other counties, such as Howard County and Anne Arundel County received bumps up to $560,000. Borrowers were able to borrower up to 97% of the value of their home, this was necessary due to the decline in values. In the 17 months since the limits have been raised, the economy has further deteriorated and jobs have been lost making these high payments increasingly hard to handle. FHA mortgage holders then inquired about streamline refinancing, but many were told that they could not streamline because it was not available on "high balance FHA loans". That has now changed across the board and streamlining your Jumbo mortgage is a very attractive option. While fixed rates are very solid below 5.5%, you should take a long hard look at adjustable rates. Here is why:
4.5% 5/1 ARM - NO POINTS- NO OUT OF POCKET EXPENSE.
Let's say that you have a 6.25% fixed rate mortgage for $550,000- your current principle and interest payment is : $3386
Should you streamline into a 5/1 ARM at 4.5% your new payment would be $2835
If you are in a position to bring the equivalent of 1 mortgage payment to the table, you can get a rate as low as 4%! new payment $2671
To put that in perspective, you could save almost $43,000 over 5 yrs under this scenario.
I know an ARM is not right for everyone, but we are in a time where we have to look at things from a shorter term perspective. You should know the risks and rewards of the program and make an educated decision based on that. If you must have a fixed, I have JUMBO FHA fixed starting at 5% today!
For updated USDA, FHA , VA, Conventional and Jumbo mortgage rates go to www.joshburley.net .
Want to make sure you are getting the best interest rate? compare my interest rates to Quicken Loans, Bank of America, Wells Fargo, SunTrust, ditech, Citimortgage, Navy Federal Credit Union . You will see that my rates are 2nd to none. Work with a LOCAL MORTGAGE LENDER that is committed to giving you the best rate and service!
Josh Burley
Sr. Loan Officer
Choice Finance Corp.
www.joshburley.net
www.choicefinance.net
301.881.8900 x125
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