One hundred eighty day interest rate locks and new conforming loan limits are a couple of recent mortgage industry changes that will benefit you or someone you care about.
Just in the last couple of weeks mortgage interest rates have dramatically increased. Interest rates were falling the first half of 2016. However, since the first week of July interest rates have increased a significant 0.75%. Yikes! Could this be the beginning of an upward trend and are rates going even higher? Perhaps. Suppose you would like to refinance now but you have an expensive prepayment penalty on your current mortgage that prevents you from refinancing until this penalty is over in five months. Or, suppose you just put a deposit on a brand new home that will not be ready for six months? How can you take advantage of current rates?
Fortunately there are some new mortgage programs that will allow you to lock your mortgage interest rate for 180 days (yes, six months). This is fantastic news if rates continue to rise. But, what happens if rates decline? Simple, if rates decline then take advantage of our one time float down to current interest rates.* If this 180 day interest rate lock is something that can work for you or someone you care about, please, give us a call.
Everyone knows that mortgage loan amounts within the conforming and jumbo conforming loan limits offer the most competitive mortgage interest rates. In the last week we just received news that for 2017 these loan limits will be increasing! What this means to you is lower interest rates for your higher mortgage loan amounts. The conforming loan amount limit increased to $424,100 and the jumbo conforming loan amount limit increased to $636,150. These loan limits apply to most areas, however, these limits do vary with the county where the property is located. Do you have to wait until January 2nd to apply for these new loan limits? No, you can apply for these new loan limits today!
If you have specific questions regarding the new loan limits please give us a call. In general, if you have questions regarding real estate or real estate finance there is a good chance that we can be of service to you.