Conforming ($417.000.00) rates plunge this week to a new low 5.25% fixed for 30 years.  Many lenders are accepting applications now for the conforming loan limit increase to $625,500.00  ahead of scheduled publication in January 2009

The only caveat is that the applicant would have to schedule closing after January 1 2009, but there is a strong possibility that refi mania is on its way.

To my mind,refi mania may start slow because of home equity issues, but as demand continues and lenders become confident that the market can sustain the momentum, property values are likely to increase and the pent up demand will force property values upwards.

I have noticed that some lenders are allowing cash out with well-qualified buyers, so one could essentially combine first and seconds to reduce monthly mortgage commitment substantially. If you have any questions or have an actual scenario, you would like to share with me. I am at your service.