Don't miss the boat when the Conforming Loan Limit increase comes, as it will be temporary! Call me or your mortgage broker to go through your current mortgage scenario, so you can be prepared when the time comes to take advantage of the temporary rise and lower your interest rate into much better terms in 2008!
The current conforming loan limit in California stands at $417,000, which is the maximum loan amount that government-sponsored enterprises like Fannie Mae and Freddie Mac may purchase or guarantee loans on the secondary market.
Under the terms of the "economic stimulus package", the conforming loan limit would temporarily rise over $700,000 in "high cost areas", such as California.
I can't stress the importance of increasing the Conforming Loan Limits in California, as I've been an advocate of increasing the limits for some time now.
William E. Brown, President of the California Association of REALTORS® states, "Currently, Californians are forced into more expensive non-conforming jumbo loans, decreasing homeownership opportunities for many and forcing others into more costly, and often riskier, loan products.
As rates are in the high 6% to 7% range on Non-Conforming loans right now, all of those homeowners in adjustable rate mortgages would be able to refinance into a Conforming loan amount in the 5% to low 6% range, saving them thousands of dollars in interest and putting them into much better loans!
The Office of Federal Housing Enterprise Oversight (OFHEO) continues to fight against increasing conforming loan limits.
Please get the word out there on the importance of this matter, as it will help the California housing market recover much faster!
In the meantime, for all homeowners that find their existing first mortgage or combined first and second mortgage balances over $417,000, I would highly recommend that you contact your mortgage broker to get the pieces in place to take advantage of this opportunity when it ultimately presents itself to California homeowners. As always, I offer free, no obligation and no hassle home loan assessments to see if we can put you in a better situation then you are currently in.
Scott Gormley
Broker/Owner
Oak Valley Mortgage
Direct: 530-592-8362
Fax: 530-267-5555
Website: http://www.CALoan.com/
"You Find the Perfect Home, We'll Find the Perfect Loan!"
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Great advice, Scott.