2008 Single-Family Mortgage Loan Limits Per Fannie Mae
Single-Family Mortgage Loan Limits effective January 1, 2008:
First mortgages:
- One-family loans: $417,000
- Two-family loans: $533,850
- Three-family loans: $645,300
- Four-family loans: $801,950
Note: One- to four- family mortgages in Alaska, Hawaii, Guam, and the U.S. Virgin Islands are 50 percent higher than the limits for the rest of the country.
Second mortgages
$208,500
In Alaska, Hawaii, Guam, and the U.S. Virgin Islands: $312,750
**** IMPORTANT ****
As part of the probable economic stimulus package,
there is talk of increasing the conforming loan limit for a single family residence to $625,000 with upward adjustments
depending upon the economics of the region. For high cost regions, such as here in California, the upper limit may become
$700,000. And a further potential adjustment to $729,750.
BUT, this still has to pass through the Senate.
If it happens, then the extra risk premium (aka interest rate) being paid for loans between $417,000 and $729,750 are
likely going to be eliminated, because the loan would now be guaranteed by the government. (I'm not exactly sure how all
that works... I'll have to look into it.) But, this should allow anyone in that (formerly jumbo) mortgage amount range
to refinance as a conforming loan with a much lower interest rate. It would likely be about 0.5% - 0.75% (my estimates)
less than the jumbo loans.
If you have currently have a loan between $417,000 and $729,750 you should call to get all your paper work prepped
so you can pounce on the refinance opportunity when it happens. Because this will cause a refinance boom, we need
to beat the rush. We have seen lenders artifically raise their interest rates in the past just to slow down volume
and we don't want to get caught up in that.
Actual upper limit subject to change.
To put this into dollars and sense (sp intended), a $700,000 loan at:
7% would cost $4,657 / month
6% would cost $4,197 / month -- savings of $460
5% would cost $3,758 / month -- savings of $439
If we assume for the moment you are able to drop your interest rate by 1%, you will save about $450 / month.
Call San Diego's Finest Real Estate at (858) 755-2111 to find out if a refinance will benefit you and if so, to begin your refinance process.
If it is more convenient, email us at aboyer@SDFRealEstate.com
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