Nathan Lindsey Announces:
February 7, 2008 - With an 81 to 16 vote, the Senate passed an amended version of H.R. 5140, a $150 billion plan to jumpstart the economy with temporary tax breaks for consumers and businesses, extended benefits, and most importantly, two provisions designed to assist the housing market.According to CNN, the House is expected to consider and pass the amended bill as early as tonight, which could put the bill on the President’s desk as early as Friday.

The bill temporarily increased the size of loans that may be purchased by Fannie Mae and Freddie Mac, raising the current level of $417,000 to reportedly up to $729,750 in the highest cost regions of the housing markets. The bill also increases the size of loans the Federal Housing Administration could insure.  The bill could be on the President’s desk to sign as early as tomorrow morning.

What does this mean?Conforming loans have the best interest rates of all mortgages available.  The current conforming limit of $417,000 is nearly obsolete in California and other high priced areas.  This bill would allow customers with total mortgage amounts between $417,000 and $729,750 to take advantage of interest rates that are almost a full percentage point better than their jumbo counterparts.  This would result in tremendous payment savings for many California and other “high cost area” homeowners.  If you have a mortgage between $729,750 and $1,000,000, there are a variety of ways to still benefit your financial situation.  The higher loan limit may only be available for a short period of time.

When can I take advantage of refinancing my present mortgage?While the bill could be signed as early as tomorrow, it is difficult to pinpoint when banks will begin accepting applications.  Once the bill passes, it may take up to 30 days for HUD to assign median home prices to determine which areas are eligible for the higher loan amount.  Most of California will be eligible for higher conforming limits. 

What should I do right now?Orangize your financial documents; for example, your most recent 2 years of W2’s or tax returns, your most recent bank and investment statements, rental property agreements, etc.  Banks have significantly reduced their underwriting staff and personnel over the past 6-12 months and thus are not fully equipped to handle the inflow of new applications.  If you are organized and have your paperwork ready, you can be among the first to take advantage of these temporary changes.  I am proactive in overseeing and managing all of my clients mortgages and help you respond to these opportunities quickly. 

Questions and concerns?Should you have any questions (and I’m sure you will), please contact me at (714) 394-0506.  You can also reach me via email (I’ll probably respond quickest this way as I am receiving a large amount of inquiries) at natelin@hotmail.com. 

Many Thanks!I want to take a moment to thank everyone for their continued support and referrals.  Thank you!

Give Nate a call, he is the best!  Let him know how you found him…..

Sandra