Great Loan Advice

by Robert Sinohue

The Economic Stimulus Act of 2008 created a new, short-term loan product referred to as the conforming jumbo loan.  This new product was designed to temporarily help bridge the gap between conforming loans (mortgages up to $417,000) and jumbo loans (mortgages over $729,750 in the Bay Area) to encourage the purchase of new homes and to make existing loans more affordable.   

The Conforming Jumbo loan product is officially expiring on 12/31/08.  However, in order to meet the deadline, most lenders are requiring that any transaction under this product close by 12/01/08.  So, if you are currently considering a refinance or purchase transaction within the Conforming Jumbo loan limit ($417,000 up to $729,750 in the Bay Area), I would highly recommend that you start the process as soon as possible. 

When the government initially enacted this program, it was unclear whether it would have any permanent impact on loan limits.  But fortunately for homeowners, as of January 1st 2009, the conforming loan limit will be raised from $417,000 to $625,500.  Given these changes, it may be especially important for individuals with loan amounts from $625,500 to $729,750 to take act now before time runs out.   

Questions?  Need a rate quote? Contact me at via email at rsinohue@calmtg.com.