Stimulus Plan Helps Some HomeownersBy ALAN ZIBEL, AP Business WriterFriday, February 8, 2008 (02-08) 02:02 PST WASHINGTON (AP) -- The biggest winners in the economic rescue plan now awaiting President Bush's signature are likely to be Americans with more expensive homes who will be able to refinance their home loans at cheaper rates.The stimulus package temporarily raises the maximum size of mortgages that government-sponsored mortgage companies Fannie Mae and Freddie Mac can purchase and market as securities from $417,000 to as high as $729,750 in expensive parts of the country such as New York and California.Right now, borrowers in expensive areas are "really stuck between a rock and a hard place," said Mark Vitner, senior economist with Wachovia Corp. Raising the caps, he said, will result in a refinancing boom for those properties. For the entire story go to: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/02/07/financial/f230824S66.DTL
I wanted to make certain that you are aware of recent developments in the mortgage industry. There has been a dramatic rate decline in fixed-rate mortgages. In addition to these low rates, Congress is currently in the process of increasing the limit on conforming loans to $729,750. If you currently have a loan amount (1 loan or 1 & 2 combined) between $417,000 and $729,500, these changes can affect you. Five (5) year conforming interest-only fixed rates (loan amount of up to $729,500 pending Congressional approval) 5.0% for no points.
Loan Amount | Monthly Payment |
| $300,000 | $1,250 (5.295% APR) |
| $400,000 | $1,667 (5.315% APR) |
| $500,000 | $2,083 (5.328% APR) |
| $700,000 | $2,916 (5.342% APR) |
Fifteen and 30-year conforming fixed rates have also dropped dramatically. Also, we wanted to let you know that California Home Loans has recently partnered with EquityKey to offer you a unique product. If you or your spouse is over the age of 64, the EquityKey program gives you the opportunity to receive debt-free cash without risking any of the existing equity in your property. You do not have to pay back any of the money you receive. Please call me if you have any questions about your mortgage or the recent developments in the mortgage industry. With best wishes for a joyful and healthy new year,
Luis Ramirez-Agudelo
WalnutCreekHomes.com
California Home Loans
(925) 567-6763
California Home Loans is licensed by California Department of Real Estate #01330102
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