Today's Home Lending Market
Dear WEL Blog Readers,
As WEL’s Mortgage Consultant, I feel the need to write about what’s currently happening in the market. I am the type that always finds that silver lining in every cloud.
First, the 2009 Fannie Mae and Freddie Mac conforming loan limits for San Francisco County (including most Bay Area Counties) has been increased to $625,500 for 1 unit. It increased to $800,775 for 2-units, $967,950 for 3 units, and $1,202,924 for 4 units. This will allow troubled borrowers to refinance out of sub-prime loans and make it easier for many new buyers to qualify for mortgages in high-cost areas throughout California.
Second, as you are probably already aware the interest rate for a 30 year fixed (Conforming and FHA) is between the 5 – 5.375% range. The 15 year fixed is at 4.875%.
Finally, the latest rumor is that Treasury Secretary Henry Paulson is considering a new plan to reduce mortgage rates even lower in another bid to revive the U.S. housing market. Under this new plan, the Treasury could drive down interest rates on some loans to 4.5%. This could allow a lot of homeowners to refinance into a cheaper loan but some financial experts expect far fewer people will actually qualify for the lower rates. There are already a number of additions to rates due to credit score, loan to value and purpose of loan. With substantially lower rates, lenders will probably tighten these requirements even more.
Whether you’re curious if you qualify for lower rates or you're purchasing a home, please don’t hesitate to call me at (415) 252-7552 and set an appointment. I am here to walk you through the often very difficult decision to refinance and/or purchase a home.
As WEL’s Mortgage Consultant, I feel the need to write about what’s currently happening in the market. I am the type that always finds that silver lining in every cloud.
First, the 2009 Fannie Mae and Freddie Mac conforming loan limits for San Francisco County (including most Bay Area Counties) has been increased to $625,500 for 1 unit. It increased to $800,775 for 2-units, $967,950 for 3 units, and $1,202,924 for 4 units. This will allow troubled borrowers to refinance out of sub-prime loans and make it easier for many new buyers to qualify for mortgages in high-cost areas throughout California.
Second, as you are probably already aware the interest rate for a 30 year fixed (Conforming and FHA) is between the 5 – 5.375% range. The 15 year fixed is at 4.875%.
Finally, the latest rumor is that Treasury Secretary Henry Paulson is considering a new plan to reduce mortgage rates even lower in another bid to revive the U.S. housing market. Under this new plan, the Treasury could drive down interest rates on some loans to 4.5%. This could allow a lot of homeowners to refinance into a cheaper loan but some financial experts expect far fewer people will actually qualify for the lower rates. There are already a number of additions to rates due to credit score, loan to value and purpose of loan. With substantially lower rates, lenders will probably tighten these requirements even more.
Whether you’re curious if you qualify for lower rates or you're purchasing a home, please don’t hesitate to call me at (415) 252-7552 and set an appointment. I am here to walk you through the often very difficult decision to refinance and/or purchase a home.
Labels: Fannie Mae, Freddie Mac, Henry Paulson, homeowners, lower costs tips higher profits Weltax.com, Mortgage Consultant, purchasing a home, refinance
posted by Char at
10:50 AM
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