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January 13, 2009

Conforming Loan Limits May Rise

mortgage-rate-chart-0109.jpgWhile it's tempting to refinance right now given the fall in mortgage rates in recent months, it may make sense to wait: According to The Times, the government may raise the conforming loan limit in New York to $729,750 from $625,500 as part of the stimulus package. That could mean paying 5.25% for a 30-year-fixed rate instead of 6%. Of course, inaction may work against you too: rates could rise while you wait.




Posted by Brownstoner at 9:15 AM | Comments (6)
Categories: Mortgage

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Comments

Is this just for single family homes or also for condos and coops?

Posted by: JENNYFROMTHEBLOCK at January 13, 2009 9:29 AM

Of course they should do this. Any federal mortgage policy which fails to take into account differing prices in different states is fundamentally flawed.

Posted by: dittoburg at January 13, 2009 9:44 AM

Believe it's for single family dwellings - regardless of structure - but not 100% sure.

Am sure that it's higher for 2 family houses. $800,770 to be precise. And may rise.

Posted by: Johnny at January 13, 2009 10:34 AM

oh yes! this would be great!

Posted by: wine lover at January 13, 2009 11:31 AM

Unfortunately the move by Fannie and Freddie to raise the confirming loan limit in NY to even $625,500 has blown up!
The Banks are taking advantage any way possible and are actually now charging these loans at rates significantly higher!

Government should be made aware of this... It is hurting the people and home market in NY more and more!

Posted by: Ross at January 14, 2009 11:29 PM

actually the current lmits of 625k are for coops and condos too. the old limits last year of 729k (they dropped to 625k effective 1/1/09)were also the same. I would assume that if the limits were increased back to 729k they would include coops and condos as well.

As far as higher rates for these jumbo conforming loans: there are alot of variables that come in to play. there are some good options especially when paying 1 point to discount the rate. The main reason these rates are higher than the standard conforming rates is because Fannie Mae set the rates at these loans higher. Fannie never wanted to increase the limits, the gov't forced the issue, so Fannie responded by issuing rates higher than standard conf rates.

Posted by: Edward Ades at February 15, 2009 11:15 AM

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