California Conforming Loan to Raise Up to $729,750

One item out of the Bush stimulus package of Jan 20 is the conforming loan is to raise to $729,750 for a limited time.
This piece information has arrived in such a critical time for much needed Californians, especially the first time buyers, who want to have ownership but could not afford the jumbo loan, which was over $417,000 of current standard. And the average single family home in California is over $475,000. In Santa Clara County, the average single family home is over $755,000.
Not only the potential new home buyers are benefit, but also those who are facing possible default this coming years may have a breather that they can refinance their properties. According to Senator Barbara Boxer,  the monthly savings for a 30-year fixed  mortgage of $550,000 would be $353. For a 30-year fixed mortgage of $650,000, the saving would be $417 a month.
The raise of conforming loan limit is especially welcome in the country’s expensive housing markets including, San Francisco, Bay Area, Boston, New York and Northern New Jersey.
The bill still need the Congress to act and pass expectantly in mid-February. In Bush’s State of the Union address last night, 1/28, he’s pleading the members of the two houses to help him and help the country to minimize the economic crisis of 2008.
We welcome the move and hail the legislators to work together this time.
Meanwhile, conforming loan rate has a huge drop to 5.375% – 30 year-fix and 1/5 ARM to 4.675%, both with 1 pt buy down. The rate is good for the week of 1/26 – 2/1. Please contact me should you have any questions regarding the new standard and rates.
Jin Chen
408.996.8100 x 316

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