Of all the bad sub-prime loans and real estate foreclosure news lately, President signing the bill of economic stimulation package 2008 was the only winner for the consumers. I am not talking about the rebate check qualified person/household will get later in the summer. I am talking about the raise of conforming loan limit to $729,750 to much needed high cost living area, such as ours, the Silicon Valley.
For Bay Area, Marin, San Francisco, San Mateo and Santa Clara Counties, the average single family house is over the conforming loan standard. Around $750,000. With Marin and San Francisco Counties are even over $800,000. With the old standard, conforming loan at $417,000, limited new home buyers ability to borrow. Because jumbo loans were at average 1 point higher, and at $500,000, with 1 point differences, it’s extra $400 bill on mortgage monthly. (Jumbo loans are loans over the conforming loans limit)
With the new conforming loan standard, potential buyers not only have more buying powers, but also can take the advantages of another historical low rates. We are lucky to have Bay area’s housing holding steady in 2007, and hopefully in 2008. Buyers shouldn’t be hesitant and suspecious of the offers any longer, for the offer is not forever, at this time, it’s ONLY TEMPE RORY, till the end of the year (2008). Although eventually this is likely to change. For conventional buyers, think of the consequences that the tax benefit this will bring to your income tax return of 2008. — All the mortgage, is tax deductable.
Rates for loans for the week of Feb. 11 – Feb 17:
Conforming: 30 years: 5.375%
Conforming 1/5 ARM: 4.5%
Jumbo Loan: 30 years 6.5%
Jumbo loan 1/5 ARM 5%
The above rates are with 1 pt.(rates are subject to change anytime without further notice)Any questions about loans and real estate refinancing, purchasing, please email me or give me a call.
408-996-8100 x 316