The conforming loan limit has been raised to $729,750. What does this mean Home Buyers & Sellers?
As part of the "economic stimulus package" pushed through by President
Bush, the conforming loan limit has been raised to $729,750. What does
this mean for a home buyer in Santa Clara County?
If your buying a property as your residence, this program allows you to
obtain an interest rate more favorable then the current "jumbo" rate.
Although the rate is higher then the standard conforming loan rate
($417,000), it is significantly better then the jumbo rates.
For example, if you purchased a home for $912,100 with 20% down
and a 30 year fixed rate mortgage, your payment would be $4,552
under the "agency conforming rate" instead of $5228 under standard
"jumbo" rate. A savings of $676 per month.
Deric Durand, is Co-Founder of PACIFIC LYNX MORTGAGE CORPORATION 19200 Stevens Creek Boulevard Ste 220 Cupertino, CA 95014 Direct: 408 255-3600