Beach Press

Last month the U.S. emergency Stimulus package was signed into law, with a whole lot of excitement and expectations...

Especially in regards to increasing the Conforming loan limits.

However there are a few catches...

While the loan limits have been increased from 417K all the way up to 729K...

Actually they have created a 3 tier system.
1. Conforming: $417,000 or less
2. Conforming Jumbo: $417,001 to $729,750
3. Jumbo: $729,751 and higher

With Each Tier having a different interest rate... the higher you go, the more interest you pay.

Combining both a current 1st and 2nd mortgage into one new conforming Jumbo loan comes with an even higher interest rate...

And having a 2nd loan behind the new conforming Jumbo is currently not allowed or even offered...

Basically the lending guide lines have moved back to the 1990's.... where buying a home required putting 20% down or getting an FHA loan...

The FHA loans are excellent, and will allow up to 97% financing however it will be only 1 loan and require paying mortgage insurance if the loan is greater than 80% of the value of the home...

Just like in the 90's.

Now is a great time to take a good look at your real estate holdings, especially in regards to:

1. Home values

2. Loan amounts and programs

3. How much you pay for insurance, etc.

If you have not already done so, set a meeting with a Certified Mortgage Planner for your annual debt and equity review to see where you are and if you need to make a change...

Cezar Mansour is Certified Mortgage Planner, and is president and owner of Beach Lending, and Clear Blue Realty in Redondo Beach, CA.

A real Esate finacing frim assiting people buy their first home, investment and or comercial property.

He is a the author of "The Official Guide to Building a Referral Based Business" available on Amazon.com

You may also contact Cezar directly at: Cezar@cezarmansour.com