Thursday, February 14, 2008

President Bush Signs Economic Stimulus Bill and Increases Conforming Loan Limits


Now that President Bush has formally signed the Economic Stimulus Bill into law, it's a matter of time before we consumers feel the trickle down effects. Refund checks are expected to be in the mail in May.

Even better news, as I had written about before, is that the conforming loan limits will now increase. The current $417,000 limit will be temporarily raised to 125% of median home values, which can translate to conforming loan limits of up to $729,750. As we mentioned before, this will have a huge impact in ares with high median prices, such as San Francisco, Palo Alto, Cupertino, Los Altos, Saratoga, and really the entire SF Bay Area.

The key to this limit is that it is temporary, so make sure you have your paperwork in order and make sure you talk to your mortgage agent to see when rates fall and when it's time for you to refinance. This can save you thousands of dollars in the long run.

No comments:

Post a Comment