The Stimulus Bill, which was signed by President Bush in April  2008, helps to raise the limits of Fannie/Freddie and  guidelines to be used for purchases and refinances of owner-occupied properties across the nation. For the counties in the Bay Area alone the new limits  has raised  to $729,750  which is over $300,000 higher than the current conforming limitof $417,000.  

You are going to ask what is its benefit with the higher limit on the mortgage, right?

 Well, let me find the right way to put this on a better perspective so you can know what I am trying to show here.

For the buyers:

Higher loan limits that means better chance for you as buyers to get the loan since the the loan to value loan will be higher since you don't have to get 2 loans for purchasing your home comparing to old loan limits of $417,000. It also means better rate since you only have one loan to borrow no need to apply for jumbo loan with higher rate. An FHA 30 year fixed is 6.125% while Jumbo 30 years fixed rare loans are about 8%- nearly a 2 % difference in rate... Do you know what it means in dollars value that you are saving? And best of all, the conforming loan should offer even better pricing (now below 6%). More great news that with the convenient computerized approval  system allows the mortgage company to get the same day  approval. Isn't that great for the buyers? I can't think of better time than now to move in your dream home.

 Refinance:  For homeowners with interest-only loans, adjustable rate loans or the worst option-arm loans, this is the time to get way from those dreaded loans and take  advantage of the new fixed rate or long-term adjustable loan (7 to 10 ARM). If you are planning to keep your home for longer than 3 years with a loan larger than $417,000, this is the right time to refinance so you can save about 2.5% difference between Jumbo and Conforming 30 year fixed rate loans. 

Any question about mortgage or refinance or credit scores improvement. Call our in house lender: John Dutra  at Metrocities Mortgage. 510-578-0503 direct or 510-364-0764 cell

Any information about First Home Buyer Program or Free Buyer Worshop. call me at 510-921-8501 0r 510-573-4636  or send your request at my website: www.AnnieFreeHomeReports.com