There has been plenty of buzz about the portion on the President's stimulus package that could possibly raise the loan limit on conforming and FHA loans. So what does this mean. Well if you have a loan of $600,000, instead of a 30 year fixed rate at 7% (approximate as of 1/29), you could get a 30 year fixed rate at 5.5%. The payment at 7% is $3991.81. The payment at 5.5% is $3,406.73. A difference of $585.08!!!! Before you get too excited, there are caveats, of course. VALUE being the biggest factor. Everything will be great if your loan is 80% of the current property value. If it's not, then you may have to deal with PMI and that will increase your payment!!! OK, OK, I won't get negative. Anything is a positive at this point. Stay tuned, there is new news on a daily basis.
Just a reminder, if your loan is $417,000 or under or if you are purchasing a property that will fall in that range, INTEREST RATES ARE STILL LOW. Call us and we'll let you know what's possible.
Our next conference call is February 21st, 12-12:30 p.m. Build wealth through real estate. Be in the game while most aren't!!!!
Subscribe to:
Post Comments (Atom)
1 comment:
Hi, I live in my mother's house and I have been making the mortgage payments, but the loan is not in my name. How do I get the loan in my name and get these rates???
Anonymous Wanna-Be Homeowner
Post a Comment