Jumbo Loan Rates Never Better

With the feds cutting interest rates again, mortgage rates have followed suit. Credit guidelines have risen, but mortgage rates have fallen. While interest rates fluctuate daily they are still at historical lows and such a perspective is important, lest we forget a time when we bragged about our 15% interest rate.

We’ve all heard enough media focus on the housing market. Aside from mass media influencing our perspective on the value of real estate, it has masked opportunities available to home-owners and potential home-owners in a dynamic mortgage market. While many stare in dismay at a half empty glass, select few will see the prize wine that fills the other half. Success awaits those who find the advantages among dismally cast shadows.

Of significance is the passage of an Economic Stimulus Bill, which temporarily raises the maximum size of mortgages that government-sponsored lending companies Fannie Mae and Freddie Mac can purchase and market as securities. What does this mean? It means that loans greater than $417,000, which previously had been as much as 1% higher than loans less than $417,000, will have rates offered at the same rock bottom level. The increase in the conforming loan limit can be as high as $729,750 in some areas of the U.S. The cost of borrowing at these loan amounts is not likely to be lower than it will be in the next few months.

While some stew, some do. Follow this link for a complementary mortgage analysis.

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