All this year I have been keeping you abreast of important changes in the lending industry. You need to take note and improve or repair your financial situation. Don't just sit back and think it will get done on its own. It's time for you to evaluate your situation to see if these changes can help you. In almost every one's present situation, there is an opportunity for improvement. Below I have explained four of the most important issues of change this year.
MORTGAGE RATES
You should know by now that interest rates are at a historic low. If your interest is 5.50% o higher, you need to inquire about lowering it now! Based on a loan amount of $417,000, you would save almost $350.00 per month! That's over $4,000.00 per year! If your closing cost were $6,000, you recover them in just 17 months! The rule of thumb in finance is; "If you can recover your expenses in 30 months or less, do it!".
LOAN LIMITS
The Government recognized that the loan limits for San Bernardino and Riverside Counties needed to be raised, and, they were. If your loan balance is $500,000 or less, your loan is now considered "Conforming". This is very important and it will only be the case for 6 more months! Conforming loan amounts allow you to obtain these more favorable rates, versus being classified as a "Jumbo Loan" where the rates are not good. L.A. County is at $729,750. This program has been extended until June 2010!
The Home Affordable:
This is a Government program That we can offer to people like you to refinance into a more favorable Home Loan. The Program has many Golden opportunities for people who have a mortgage owned by Fannie Mae or Freddie Mac. Even though you pay your mortgage payment to a Bank or loan service company, chances are, (88%) your loan is owned by Fannie or Freddie! This makes you a candidate! This program is designed to help people who are "Underwater" with their loan balance or, if the balance is what the property is worth. Don't get me wrong, this is not a "Bailout or Financial Hardship program" it will not effect your credit profile at all.
Arm Loans
If you have an ARM (Adjustable Rate Mortgage) Loan, you need to get out while the getting is good! The best time to have an ARM Loan is during a Recession, like today. During a Recession, indexes are low, causing mortgage rates to be low. But, the recession won't last forever. If you wait to refinance when rates go up, you will miss out on historical rates of today!
