Mortgage Update - May 17th 2008

Per a Lender at Union Trust:

Agency Jumbo Loans are finally priced nicely. Agency Jumbo loans are between 417k and 729k. We've been waiting for this for a long time. For example, 30 year fixed mortgages for jumbo loans today are floating around 7.125%, however if your loan is at 729k, but above 417k then the loan can qualify for better jumbo financing at 5.875%, 30 year. The difference is 1.25% in rate but $731 per month for a jumbo loan. That is an annual savings of almost 9k.


Fannie Mae as of June 1st, 2008 will no longer require larger down payments for 'declining markets'. This is GREAT news. It means that banks will start to follow suit and mortgage underwriting guidelines should be easing up for all conventional financing in markets that have seen downturns. It's a huge statement by the government that they feel the 'worst' has hit and now things can normalize. Realizing SF has been protected from the downturns, some of you may have family and friends or rental properties in other markets that were effected by the 'declining market' underwriting limitations.



** STATED INCOME LOANS STILL AVAILABLE TO 80% LOAN TO VALUE AND 1.5 MILLION LOAN AMOUNTS: 700 FICO's required. Spread the news.

So if you've been thinking about Buying... start with your lender first... here's a recap of articles and steps to get started:

#1 - pick up the book "Mortgage Rip Offs & Money Savers" - here is my review of the book.
#2 - know your credit score - fix your credit - read this article
#3 - start getting property listings matching your criteria - sign up at www.Automated-HomeFinder.com. Or sign up at CleanOffer.com - the best MLS tool on the market - but you must know and agent with pre-paid access... if you don't have a Realtor, feel free to sign up under my account - free for you. Visit here to get the invite link.
#4 - get educated with the help of a Buyers Agent like myself - read this for what I mean about education.

With the above, you can start a confident house hunting search, ideally with the help of a Buyer's Agent. Start all 4 of the above today! Feel free to call or email me for assistance with any of the above. I provide a free copy of the Mortgage book to each of my new Buyer clients, and can refer you to 2 to 3 brokers and banks until you find one you like. Visit www.SFisHome.com for my contact info