30 year fixed rate mortgages are soon to become much easier to obtain at the higher loan amounts.  If you have been paying attention to the news, you will have noticed that the economic stimulus package has passed both the house and the senate.  President Bush is set to sign it into effect next week.  What does this mean to you?

Well, if you have an existing mortgage over $417,000, it could mean a lot.  The focus of this package for the real estate industry is the higher conforming loan limits.  For the next 12 months, this limit will be raised to a shade under $730,000.  Many people who could not qualify for the best rates and terms over the last 12 months due to their loan size not fitting in the conforming box now have an excellent option.

Now is the time to get the ball rolling.  Higher loan amounts will now be easier to qualify for, and the pricing will be much better.  If you have an existing loan that is adjustable, or you just want to take advantage of some of the lowest 30 year fixed rate mortgages historically speaking, the opportunity is here.  The new loan limits will expand the debt to income ratio for people who used to be in the jumbo loan category, meaning if you were unable to qualify last week for your jumbo loan due to a high DTI ratio, there is a good chance come next week that you will fit in that box.

Additionally, once this bill is signed, your 30 year fixed mortgage rate could well be lower than what you qualify for today.  For people looking to purchase, even first time homebuyers, this gives you additional buying power.  100% financing on a 30 year fixed rate mortgage is realistic all the way up to the new conforming loan limit.  You no longer have to stay at $417,000 to obtain this 100% financing.

This is great news for the real estate market, and anyone who has been shopping for a loan.  If you would like more information, or to see if you qualify for some of the lowest 30 year fixed mortgage rates in history, please feel free to give me a call.  I can help with your 30 year fixed mortgage transaction in California, whether a refinance or a purchase.  Don’t delay, remember, these new limits could go away after the 12 month period.  Contact me for more information for your California home loans today.