Ed's Blog

Hold on to your hats, because things are changing quickly in the mortgage market, and it all adds up to good news!

It hasn’t even been 24 hours since I blogged about the fact that fixed rate loans have risen a bit in the last week. No sooner had that blog posted than word was released that the FED has been pumping liquidity into the bond market. Rates are already coming down!

That coupled with the fact that HUD released the new conforming loan limits a full week of schedule is setting the stage for low rates on conforming loans to become available in no time. FHA also followed suit and matched the new conforming limits, opening up even more possibilities for buyers from coast to coast.

But, there’s even more great news! Smith Craine has already begun receiving pricing and guidelines from lenders on these new loans. (Incidentally, these new loans -which are above $417K, but below the limit for a particular County- are being referred to as “Jumbo Conforming Loans.”) No one in the mortgage or real estate industries expected the guidelines or pricing to be released this soon. In fact, most of us were certain it would take at least a few months. Many lenders are way ahead of schedule, and the others will almost assuredly be ready sooner than expected as well!

The good news keeps coming though! The rates for these new “Jumbo Conforming Loans” are just .5% over traditional conforming loans, making them.5% less than Jumbo Loans. Now, of course I’d love to see them even lower, but I concede this seems pretty fair.

I’ve said it many times, but it bears repeating. If you are even considering buying a home, get started on compiling your loan application. We also recommend that you contact a trusted REALTOR® and have them start looking for a home for you.

If you’re a homeowner, start getting your paperwork together to refinance into a low fixed rate loan. We’ve got everything here for you to make that process a piece of cake!

For information on the new Conforming and FHA limits in your area, give us a call at 415-406-3220. We’re here to help!