Mortgage loan limits continue to be a topic of much debate in Washington DC:
Last week the Mortgage Bankers Association put out a statement by their President, David Stevens, advocating a continuation of the higher loan limits at Fannie, Fredie and FHA for one more year. The temporary loan limits authoized by Congress have benefited consumers and the housing market during what has been a turbulent period for our nation's economy," Stevens said in the statement. He went on to say "It looked very clear at the beginning of the year that we were heading toward a flattening of the market, but we've seen clearly an impact to the housing market which is not solely a result of the U.S. economy. It's brought on by general uncertainties: Oil prices spiked for a while, which hit confidence, there were a lot of impacts both domestically and internationally" "I think the view right now that I have is that this is a relatively inexpensive initiative that could support the housing market at a time when pulling back makes no sence." He also said private capital is still too nervous about the state of housing to come back in force now. As for the FHA, which he has maintained has too large a market share right now, "If FHA is still too big, it is the sign of an unhealthy system, but it doesn't mean pulling back is the right answer. We must continue providing support."
As President of San Diego Funding, I pre-approve many first time and buy-up potential home buyers and agree that it is very important to keep the higher loan amounts for another year. The housing market is still too fragile to lose any incentive that helps buyer's obtain financing. It is not helping the wealthy segment but the middle class which is imperative to the recovery in housing.
Linnea Arrington
President
San Diego Funding
2468 Historic Decatur Road #160
San Diego, CA 92106
ph: (619)260-1660 ext. 250
fax: (619)574-6735
email: linnea@sdfunding.com
Friday, July 29, 2011
Wednesday, July 27, 2011
If prices continue to fall, why should I buy now?
While price is the major concern for anyone selling a home, cost should be your primary concern as a buyer.
That means you have to take into account what your monthly payment will be, considering not only the price of the home, but also the interest rate of your mortgage.
Waiting for prices to bottom out while rates are increasing can wind up costing more over the life of your mortgage. Fannie Mae, Freddie Mac, the National Association of Realtors and the Mortgage Bankers Association are all projecting interest rates will increase over the next several quarters.
It's best that you meet with your mortgage professional to help you determine what an interest rate increase will cost you based on the expected size of your loan. Also the knowledge of your Realtor about the area(s) in which you are looking for a new home, what prices have done and are doing, whether the home you are looking at is a short sale or not, or foreclosure, will also help guide you as to what your best decision should be.
Interest rates are still under 5%, they are historically low, if prices drop even further, and the interest rate rises, your buying power can drop considerably.
America is based on home ownership, your landlord understands this, are you ready?
Jane Loveday
Licence # 01439083
Pacific Sothebys International Realty
619-519-1615 Cell
http://janeloveday.com/
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Monday, July 25, 2011
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