I’d like to introduce a new contributor to the Wilkas Group blog, Chris Willliamson. Chris is a lender with Mortgage California, local direct lender with offices in Los Gatos and coming within weeks to San Mateo. Chris also writes a blog, one that will give you some great advise on the lending side of real estate. His company is FHA approved and is also a Mortgage Bank. Welcome Chris!
In 2008, conforming loan limits in the Bay Area received a much needed boost when they were increased to $729,750 from $417,000 for a limited time. Just as we were getting adjusted to the higher limit, they dropped to $625,500 on January 1st, 2009. Although still higher than years past, it is hard to go back to ground beef once you have tasted filet mignon.
Lucky for us, the Economic Stimulus Bill, signed on February 17, 2009 put filet mignon back on the menu. The passing of the Economic Stimulus Bill reestablished the higher loan limits of $729,750 to the high cost counties of the Bay Area. However, the chefs of the Freddie Mac Bistro and Fannie Mae Café were holding off serving up these higher loan limits until May 1st, 2009.
As we all wait with growling bellies, we received word today we can start taking applications to reflect the $729,750 loan limits and lock interest rates immediately. Although most lending institutions still have May 1st, 2009 as their roll out date, today is the day to start making your reservations.
Here is a sampling of where rates are for Monday, April 20th for the conforming loan limits up to $729,750:
• 30 year fixed at 5.125% (5.415% APR) with 1 point (1 point equals 1% of your loan amount)
• 30 Year Fixed at 5.5% (5.613% APR) with no points
As we move closer to the May 1st date, look for a slight drop in rates as more lenders start rolling out these loan limits. For all of you sitting around in the restaurant bar waiting for your name to be called, your table is ready! Bon Appetite!