On the heels of the Federal Housing Administration's increases in the maximum loan amounts for Sonoma County, both Fannie Mae and Freddie Mac have released their increases today March 7,2008. Following the lead of FHA, the new conforming rate for Sonoma County will be $662,500. Although this increase is currently only temporary until the end of the year 2008, it should help many families to refinance out of their high interest rate adjustable rate loans.
For those who have been waiting to refinance out of their current adjustable rate mortgage, the time is here. For example, if your current adjustable interest rate is 7.5% with a $500,000 loan amount, your current P & I is $3496.07. However, if you refinanced into a 30 year fixed at the current rate of 6.00% your monthly P & I would be $2997.75. That would be a savings of $498.32 a month or $5,979.84 a year. Let's say your interest rate is 8.5%. Your current P & I monthly payment would be $3,844.57. If you refinanced into an FHA 30 year fixed at the current rate of 6.00% your savings per month would be a whopping $846.78 or $10,161.36!
For those looking to purchase a home, this should spur the market into leveling out and possibly increasing slightly. Either way, it should stop the decreases in home prices and start building a base.
If you are looking to refinance or purchase a home, call us today at 707-494-8532 or toll free 877-392-0674 and our mortgage professionals will help you to realize your dream of owning your own home, or helping you and your family to refinance so you can afford the home you have already come to love.
Scott Dovala Branch Manager Ascent Home Loans Santa Rosa CA
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