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Conforming Change could save you $$$

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Mortgage and Lending

Conforming Change could save you $$$

The upcoming change in conforming loan limits from $417,000 to $729,750 could save you a lot of money. Not to mention save the housing market from further decline.

On a $700,000 loan, a rate reduction from 7% to 6% can save you well over $400 per month, or nearly $5,000 per year. If you make $200,000 per year income, that's like getting a 2.5% pay increase. Not bad.

Analyst are predicting we could see a 2%-3% immediate increase in home values in southern california.

We've been telling buyers and investors alike, that this has been the time to buy. Values are down and rates are incredible. Those who don't act quickly may just, 'miss the boat'.

Refinancing will funnel money back into the economy becuase many home owners will be saving a good portion of their income to spend elsewhere rather than on the mortgage. Sellers currently on the market to sell becuase they couldn't afford a new Jumbo loan will take their homes off the market reducing housing inventories.

There will be more move up buyers in the market becuase of the affordable financing on the larger homes.

With less inventory and more buyers, I think a 3% market gain is pretty conservative.

Check out the Straight Talk Radio show, we'll be covering some hot topics like these and some awesome investment opportunities.

CHUCK