President Obama has signed into law H.R. 3081, which among other items is the authorization to extend current $729,750 temporary high-balance conforming loan limits provided through Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). This ensures that current loan limits for single-family residential mortgages will remain in place until September 30, 2011. The move to extend the higher limit will effectively keep interest rates super-low for a large swath of home buyers and borrowers with loan amounts between $625,500 and $729,750. The bill also appropriates $20 billion so that FHA can continue making loan commitments through the end of 2010.

Additionally, beginning today there will be changes in the way borrowers pay for the privilege of using low-down-payment, government-insured mortgages to buy or refinance a house. FHA will lower its upfront mortgage insurance premium from 2.25% to 1% (except for HECM's) while simultaneously increasing the annual premium from 0.55% to 0.9%, which is collected on a monthly basis. Because most borrowers choose to finance the initial fee as part of the loan amount, the net result for most people will be lower monthly payments for the first few years their loans are on the books. This change will affect purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit-qualifying streamlined refinance loans.

Please contact me to discuss your specific mortgage or financial strategies.

Andy Block - Mortgage Advisor & Financial Advisor
Opes Advisors
Email Me 
Direct: 650.931.0605
Fax: 650.931.0601

License #01096311
400 S. El Camino Real
Suite 250
San Mateo, CA 94402
Fax 650.931.0601

Opes Advisors is licensed as a registered investment advisor with the Securities and Exchange Commission (SEC) and is licensed as a Residential Mortgage Lender by the CA Dept of Real Estate.

Author and Business are endorsed by Samia Realty Group
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