'Jumbo loan' limits raised (again)
Homebuyers looking for federally-secured loans now have more options after the U.S. Congress moved to reinstate the loan limit formula and maximum cap for loans insured by the Federal Housing Administration.
These higher conforming loan balance amounts were set to decrease from $697,500 to $546,600 after the government stimulus package expired at the end of September. But Congress' move returned the limit to $697,500 in San Diego and raised it in other high-priced areas for two years. This means borrowers can now borrow more money to secure an FHA-guaranteed home, a popular option that allows home buyers to put as little as 3.5 percent down and borrow at rock-bottom rates.
This development should serve as an adrenaline shot to the real estate market.
Rates reach record lows
The average rate on a 30-year fixed-rate mortgage recently dropped to 3.94 percent, tying a record low that was set in October.
According to data from Freddie Mac, the rates of 15-year fixed rates mortgages and five year fixed loans that then become adjustable also set new records.
Though foreclosures are up in California, these record lows have led for a temporary surge in home refinancing. In other words, if you're in a position to refinance, now might be a good time to act.
Homebuyers looking for federally-secured loans now have more options after the U.S. Congress moved to reinstate the loan limit formula and maximum cap for loans insured by the Federal Housing Administration.
These higher conforming loan balance amounts were set to decrease from $697,500 to $546,600 after the government stimulus package expired at the end of September. But Congress' move returned the limit to $697,500 in San Diego and raised it in other high-priced areas for two years. This means borrowers can now borrow more money to secure an FHA-guaranteed home, a popular option that allows home buyers to put as little as 3.5 percent down and borrow at rock-bottom rates.
This development should serve as an adrenaline shot to the real estate market.
Rates reach record lows
The average rate on a 30-year fixed-rate mortgage recently dropped to 3.94 percent, tying a record low that was set in October.
According to data from Freddie Mac, the rates of 15-year fixed rates mortgages and five year fixed loans that then become adjustable also set new records.
Though foreclosures are up in California, these record lows have led for a temporary surge in home refinancing. In other words, if you're in a position to refinance, now might be a good time to act.