Real Estate Stimulus Act
got some good news for people who are buying or selling
homes, it’s the Economic Stimulus Act. Basically this
is the U.S. government’s plan to jumpstart the economy.
So far most of the attention has been on the rebate
checks that millions of taxpayers are receiving but the
new bill is also designed to help “high-cost regions” of
the country by means by:
increasing the conforming loan limit from $417,000 to
$729,750. What does this mean for you? Well you can
borrow up to $729,750 at the lower interest rates that
were once reserved for loan limits up to $417,000. This
can make an enormous difference in your monthly payment!
increasing the size of the FHA loans (Federal Housing
Administration) they can insure from $362,000 to
$729,750. And how does this affect you? Well it makes
borrowing easier! For most of 2008, it’s been extremely
difficult to obtain mortgages with 5% and 10% down.
Lately it’s been at least 20%, and that’s a lot of
cash! With these FHA loans, you can once again borrow
with 5% and/or 10% down. This is really great news!
Though the Economic
Stimulus Act is only planned to last until the end of
2008, it will definitely help those people who are
pro-active and take advantage of its benefits.
Our last bit of good
news is for those who are already in homes and have
mortgages…the Stimulus Act does not exclude you from
refinancing to take advantage of these lower conforming
interest rates. We at REALESTATE-SANTAMONICA.COM don’t
do mortgages, but we are happy to refer you to brokers
we use and trust. Good luck, and remember we’re here to
Market Corner is a weekly update on the market geared
towards providing current market information you can
really use to make better Real Estate decisions.
As a respected and experienced Realtor, Colin Whelan brings his
knowledge to the public in order to empower buyers and
sellers of Santa Monica Real Estate.
if you want that type of advocacy on your side.