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Ryan’s Mortgage Blog:

I wanted to remind you guys the Fannie Mae conforming loan limit in San Luis Obispo County is $687,500, up from $417,000. I bring this up because I am working on a loan in Nevada where the limit only increased in one county. Now I realize the median home prices are drastically different in the two states, but I would take advantage of the increase here if you can. They are trying to make the change permanent, but we’ll see.

As an example, a current 30 year fixed CONFORMING loan offers a rate of around 6.375%, where as a JUMBO loan (above $687,500) rate is around 7.5%. Now let’s compare a $550,000 loan with these rates. Your payment for the conforming rate is around $ 3,431 m/o and your payment for the jumbo rate is around $3,845 m/o. A savings of $414 a month and $4,968 a year. So in terms of refinancing, if your current loan amount is between $417,000 – $687,500, you may want to crunch some numbers.

I have been really fascinated of late reading all of the articles as to what is wrong with the economy, how to fix it, are we in a recession, and who is to blame (they actually created an NCAA style bracket). It’s really crazy to me how all over the board everyone is. Anyways, I thought this one was interesting because Ben Stein tries to comfort the American people about the economy and suggests buying Real Estate.
http://finance.yahoo.com/expert/article/yourlife/91896

For all of your mortgage related questions or economy rants, you can reach me at RBaker@PeregrineLending.com or 805-540-0866.

Written by Keith Byrd - Go to Keith's Website/Profile