Hot off the press from one of our preferred mortgage consultants, Monica Di Perna:
The recently approved economic stimulus law allows people with mortgages over $417,000 and under $729,000 to take advantage of temporarily lower interest rates.
Normally, a loan amount of $417,000 or under gets the lowest rates. However, as a way to stimulate the economy, the government is raising the limit to $729,000. This means that you may qualify for a better interest rate! However, in exchange for a lower rate, you are required to meet stricter reserves and FICO criteria.
Sample Rate Comparison:
30 Year Fixed Jumbo 6.875% vs. 30 Year Fixed Conforming 5.75%
10 Year Fixed Jumbo 6.25% vs. 5.625% for a Conforming 10 Year Fixed
Please keep in mind that we do not yet know how lenders will adapt these changes. It’s possible they may only apply to fully amortized loans.
We can help direct you to high-integrity mortgage lenders who can help you find the right program, whether you plan to purchase or refinance your existing loans.
Regardless, rates are great and the San Francisco housing market is swinging again. Get off that prickly fence and get it done!
