A Rare Window of Opportunity for Jumbo Mortgages in California
May 20th, 2008 categories: Buying Real Estate In California...With Finesse, Jumbo mortgage, Smarter Ways to REFINANCE
It is amazing that there has not been more media coverage on an opportunity that impacts so many real estate owners here in California. Here is some good news, but know this: IT IS ONLY A LIMITED TIME OFFER, and that is not sales hype. This is a very serious heads up, and something that may cause a mad money rush at the end of the year.
Don’t wait.
Until the end of the year, rates will be far lower for those with mortgages of $417,000 to $729,000 in most of coastal California. This is because these loans temorarily fall into a special category between conforming loans (the least expensive rates) and jumbo loans (the most expensive rates).
This “gift” to California is a part of a mortgage stimulus package and allows these loans to be re-sold on the secondary market the same way conforming loans are sold. Why do loans that can be re-sold carry lower rates? Because otherwise, lenders must keep the loans on the books, thus eliminating the ability to loan the money again. Lenders must also assume the risk of holding the mortgage. Think of it as turning the inventory.
Now for the good part: what does this rare bit of good news do for you?
Easy: this may be the cheapest mortgage money available for many years to come for those with jumbo mortgages. If you have been waiting to buy until prices go lower, stop waiting. Remember your overall cost is a combination of what you pay for the house, and what you pay for the money. This money is cheap enough that you would be wise to accept that real estate values may drop slightly after buy.
Oh well. Keep staring at that rate which will start with a 5 or a 6 and remember how much the overall cost goes up if you have a rate that starts with a 7 or an 8.
Of note: These loans will require you fully document you assets and income (no stated income loans). They are available as 30 year fixed rate loans and adjustable rate mortgages with fixed interest terms. Second loans or equitylines are allowed behind these loans.
You may use these loans to refinance or to purchase. They are commonly referred to within the industry as “jumbo agency loans” or “temporary conforming” loans.
Only certain counties carry the maximum limit of $729,000. To check your county click here
For additional information, call me directly at 925-627-2586.
If you own an apartment and fallen on financial hardship and are being subject to eviction proceedings, it might benefit you to study an apartment rent back guide. You may be able to sell the apartment and still stay in it without having to move. You may even be able to re-buy your property once the foreclosure is completed. Read on to find out more.