Conforming Loan Limits May Rise
While 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…
While 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.
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.
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!
oh yes! this would be great!
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.
Of course they should do this. Any federal mortgage policy which fails to take into account differing prices in different states is fundamentally flawed.
Is this just for single family homes or also for condos and coops?