Ok, I wrote this post as an update on my previous post "The best time to get a jumbo loan is....not now".
Well as of today that post is null and void. Lenders are now accepting new loans with the increased conforming loan limits. These limits vary by county, however in high cost areas they are up to $729,750, which completely trumps the old limit of $417,000! Fannie Mae & Freddie Mac now have permission to purchase these loans from the bank up until December 18th, 2008.
Below is an example of the estimated savings of the old jumbo loan to the new conforming loan.
| |
| Loan Amount | $ 600,000.00 | $ 600,000.00 |
| Interest Rate | 5.75% | 7.125% |
| Monthly Payment | $ 3,501.44 | $ 4,042.31 |
| Monthly Savings | $ 540.87 | |
| 1 Year Savings | $ 6,490.44 | |
| 5 Year Savings | $ 32,452.20 | |
| 10 Year Savings | $ 64,904.40 | |
| 20 Year Savings | $ 129,808.80 | |
| 30 Year Savings | $ 194,713.20 | |
The above chart is based on a refinance or purchase. You must provide full documentation, have a loan-to-value ratio of 80% or less, owner occupied, single family residence, no impounds, and a FICO score of 720 or above to qualify. Sorry, but we have to disclose the legalese bla bla bla stuff. This isn't a commitment to lend, bla bla bla.
So go out there and purchase or re-finance. It will probably be the only time that jumbo's loans are at conforming prices!
;)
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