The deadline for funding loans under the temporary conforming loan limit is December 15th 2008. Some banks are cutting off funding on December 1st. Loans between $417,001 and $729,750 absolutely have to fund by these dates. The maximum conforming limit for 2009 will be $625,500 and we are not sure which areas in the San Francisco East Bay areas will qualify at the new limits. Some areas will most likely not qualify for the maximum. We don’t really know how different markets will be affected by this change.
If you are a buyer who wants to put no more than 10% down and you are looking at buying a house for a little over $800,000, your time to buy is quickly approaching a deadline. Jumbo loans require at least 20 to 25 percent down and offer much higher interest rates.
If you are a seller considering selling your home in around the $800,000 price range, I suggest you get your house on the market immediately and price it right so that it will get immediate action. The pool of buyers able to purchase your house after the middle of November is going to be greatly reduced.
There is no information yet available as to how the interim period between December 15th and the beginning of next year will be handled.
After taking Meal-on-Wheels to Grandma, the small, good wolf co-signed home loans for all the little pigs
On another lending front, for any of you that are having trouble with your payments, Countrywide has come out with a plan aimed at borrowers with subprime mortgages, or pay-option adjustable-rate home loans, which would temporarily cut interest rates on some loans to as low as 2.5%. Some borrowers who owe more than their homes are worth could even see their loan balances reduced, giving them equity once again in their properties. The idea is to modify a loan’s terms just enough to create a new monthly payment, including principal, interest, taxes and property insurance, equal to 34% of a borrower’s verified monthly income. Bank of America, who will be slowly taking the name “Countrywide” out of circulation, says they have obtained permission for the modifications from the vast majority of the big banks, investment funds and institutions to which Countrywide sold most of its loans while continuing to service them. 10 other major mortgage-servicing companies have been given an ultimatum by the Senate to adopt programs similar to the Countrywide plan. Thank-you Bank of America for being pro-active. Now let’s see how this shakes out.
There may be a bright side to our financial crisis
Here is something to leave you thinking about as we go into our last week prior to elections.
The next time you hear a politician use the word ‘billion’ in a casual manner, think about this. A billion is a difficult number to comprehend, but one advertising agency did a good job of putting that figure into some perspective in one of it’s releases.
A. A billion seconds ago it was 1959.
B. A billion minutes ago Jesus was alive.
C. A billion hours ago our ancestors were living in the Stone Age.
D. A billion days ago no-one walked on the earth on two feet.
E. A billion dollars ago was only 8 hours and 20 minutes, at the rate our government is spending it.
I think it’s time for a major change, don’t you?
Edited and Written by Dan Joy
This video touched me. It’s great to see young people so involved in our country’s politics again. Thanks to this Marin kid.
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