All Good Things Must Come to an End- Well High Balance Loan Amounts that is

All Good Things Must Come to an End- Well High Balance Loan Amounts that is

Talk around the water cooler lately is the $729,750 Loan Limit Is Expiring

Expiring higher loan limits across the Bay Area might cost you. There is a scheduled termination of the temporary, $729,750 conforming loan limits in high-cost areas. After September 30, 2011, places like Alameda County, Contra Costa County, and Marin County, in California will face a new, lower conforming loan limit.

What does this mean to you?  As of right now, May 2011, a $925,000 home purchase needs a 21 percent down payment to keep it within conforming loan limits. After October 1, 2011, that figure will jump to 33 percent. It is an out-of-pocket cash difference of $104,250 to continue receiving access to the best rates in the market.

Listen to the Expert

As mentioned, Conforming limits are set to expire October 1st  BUT if you are looking to purchase, the time is now. Alex Gonzalez CFO of Vintage Mortgage Group in Pleasanton states, “We have seen this before, the rules are announced BUT banks will layer their own rules on top and cut off the prospective loan amount way sooner”.  Alex also states, “If consumers plan on purchasing or refinancing, it is important they remember that the banks establish their own rules; and they are generally more restrictive than what the government stipulates”.

Check Your Local Conforming Loan Limit Online

There’s over 3,100 official municipalities nationwide, and each has its own conforming loan limit. Loans for more than the conforming loan limit may be considered jumbo, and jumbo mortgages tend to more pricey.

To check your local conforming loan limit in your county here.

Get Pre-Approved So You Can Move Quickly ahead of the Changes

When you’re shopping for a home with a guideline change imminent, get pre-approved. Speed counts.

All things equal, sellers and even more so banks want to close quickly to move their REO property. If you’re pre-approved, you can do that.

To start the process, (and to check mortgage rates while you’re at it),  Give me a call at 925-708-5400 or shoot me a message below to get started! I love to work with my readers!



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