All those phone calls that you've been getting from "hungry" mortgage brokers may be worth listening to pretty soon. The proposed yearlong increase in conforming loan limits will be coming as soon as the federal economic stimulus package is approved.
As of this morning, the new limits expected for California will probably be $625,000, up from $417,000. Because interest rates for these Conforming loans is much lower than so-called Jumbo loans, (and may move even lower when the Fed lowers the prime rate again at the end of this month) you can expect a rush of new refinancing when the bill is passed.
Sue-Baker Dirickson, our in-house lender, advises homeowners with loan amounts in the $425,000-$625,000 range to start their paperwork now, so that they can be first in line to take advantage of these new lower rates...not a bad idea!
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