Are Conforming Jumbo’s Finally Ready For Prime Time?
May 9th, 2008 Josh Lewis, CMPSome important and potentially very valuable information to pass along today. Most of you are aware that earlier this year Fannie Mae and Freddie Mac increased their “conforming” loan limits as part of the government economic stimulus package. In some areas, including most of California, the loan limits increased all the way to $729,750. This was great news for many people with jumbo loans facing adjusting interest rates, needing cash out, or to consolidate other debt including 2nd mortgages.
Unfortunately, hopes were quickly dashed as lenders priced the new “conforming Jumbo’s” at nearly 1% above the actual conforming rates.
Today brings very good news as Fannie, Freddie and some of the major players in the mortgage markets got together over the last few days and drastically cut the rates on loans at the new limits. This means “conforming Jumbo” rates in the high 5%’s for a 30 year fixed and the very low 5%’s for a loan fixed for the first five years.
In addition, some lenders have eased the restrictions on consolidating a 1st and 2nd mortgage.
If you have a need to refinance a loan above the conforming limits, this may be your best opportunity. The increased loan limits are due to expire at the end of the year. Additionally, current rates are as good as they have been all year, matching the best levels seen since 2003-2004.
If you would like to see the current loan limit in your area, please click here. (Be sure to set “Limit Type” field to “Fannie/Freddie”)
For anyone interested in seeing a Total Cost Analysis comparing their current financing with options available today, shoot me an email or give me a call at 888-944-5674. I would be more than happy to discuss your options.