Proposed legislation that could save you money.

Over the last few days, CNBC as well as many other financial news sources have published articles suggesting that the White House and Congress are no longer questioning whether or not to increase the conforming loan limits, but rather for how long. As of right now, it is almost certain that conforming loan limits in high-cost areas will increase between 150-175% (from the current $417,000 to as much as $729,750). As I write this, the bill has passed through the House of Representatives and is on it's way to the Senate, for the final stamp of approval.

How would this benefit you?

As an example, based on today's mortgage rates, you could save up to 1.00%, in comparison to today's Jumbo loan rates! The current debate is whether this increase will be temporary for one year, two years, or be permanent. The final decision may not come until March; however, I wanted to share this important news with you now because it could provide you an incredible opportunity, especially with the recent drop in rates.

Recent rate cuts from the Fed

Interest Rates are at the lowest they have been in years. Last week, the Federal Reserve made an historic 0.75% point cut, followed by an additional .50% this past week. That's 1.25% in 8 days!
The people who will benefit the most when this legislation passes are those who owe more than $417,000 on their current mortgage and those looking to purchase a new home or investment property in California. Once the new conforming limits go into effect, I anticipate the housing market heat up, the stock market to improve, and there will be a huge refinance boom. Be prepared and plan ahead. Banks are going to be overwhelmed. The turn time's from application to close could become anywhere from 30 to 45 days.

Plan ahead

If you are planning to take advantage of the pending higher conforming loan limits and the historically low interest rates, I highly suggest you start getting your paperwork ready now. I will be happy to arrange for a complimentary mortgage evaluation from one of my trusted loan specialists to see how much money you will save as a result of this legislation.

Please start getting together the following items if you plan on refinancing or purchasing soon:

- Pay Stubs (most recent, 1 full month)
- W2's (most recent, 2 years)
- Bank Statements (most recent, 2 months, all account)
- Retirement and Portfolio Statements (most recent, 2 months, all accounts)
- If you are self-employed: Federal Tax Returns (most recent, 2 years)