Rates On Bigger Mortgage Loans May Finally Come Down
Posted by TheHomeCart.com on Saturday, May 2nd, 2009 at 6:53pm.The cost of home loans from $625,500 to $729,750 in high-cost regions should come down in the next few weeks, Kathleen Pender reported in SFGate.com. Although the economic stimulus act passed in February increased the conforming loan limit in high-cost regions to a maximum of $729,750 for single-family homes through the end of this year, lenders have been waiting for Fannie and Freddie to issue underwriting criteria before lowering their rates. Fannie issued its criteria March 30 and Freddie on April 16. Both will start buying loans of up to $729,750 from lenders on May 4.
The conforming-loan limit is the biggest mortgage that can be purchased by Fannie Mae and Freddie Mac. Anything over the limit is called a jumbo loan, which costs considerably more. On loans up to $729,750, Fannie will go up to 90 percent loan-to-value and Freddie will go as high as 80 percent. Both will require a "field review" by a second appraiser on loans that are greater than $625,500 and more than 80 percent of value.
As lenders start making these bigger loans, the price should come down.
Our select team here with TheHomeCart.com and Brokers Guild - Cherry Creek Ltd is committed to meeting all of your Colorado real estate needs. We use the latest technology and utmost degree of customer service to enhance your real estate buying and selling experience. Our team services the Denver Metro area helping buyers and sellers with homes, townhomes, condos, lofts, and investment properties. We specialize in offering relocation assistance for local, national and international buyers of homes and properties here in colorful Colorado. For more information about buying or selling your Denver area home, please contact us here at TheHomeCart.com.
Print
ShareBe the first to comment on this blog entry!
Leave a Comment
Area Quick Search
Latest Blog Entries
Quick Tips To Get Your Home Sold Fast!
There are three factors that determine how fast a home will sell. These three things are price, location, and condition. There is nothing you can do about location. Your home is where it is, and if you want to get the best possible price in a timely …
Read Full Post...5 Tips for Protecting Yourself When Purchasing a New Construction Home
Are you planning to purchase a new home? If so, you are likely quite excited about the homeowner possibilities before you. After all, purchasing a home is always an exciting experience and the prospect of purchasing a new home is even more thrilling …
Read Full Post...International Buyers Head for American Cities
Headlines blared over this past summer about the influx of international buyers into the American real estate market, touting the effects of investment, leisure and relocation purchases made by people overseas. While Miami, Las Vegas and the coastal …
Read Full Post...Buying a Home with Built-In Resale Value
Community We have all seen ads touting, “Location, Location, Location.” What does this mean exactly? Prior to being an agent, I thought it was REALTOR®-speak for “this property has nothing going for it but it’…
Read Full Post...What makes Luxury Real Estate a Luxury?
We have all driven around neighborhoods nicer than our own, enjoying the views of homes that are stunning for one reason or another, perhaps just their shear size, or maybe the detail of their design. It is easy to daydream about what it would be li…
Read Full Post...