I Want You

dollar-sign.jpgThe stimulus package is the jolt our local housing market needs.  There are several pieces to the package, including those often-talked-about checks that some will receive.  There’s a business piece that the valley will appreciate.  Maybe an unemployment aspect. 

We NEED the increase to the conforming loan limit of $417,000.  We are in one of the most – if not the most – expensive housing markets in the country.  The median price of housing in San Mateo County is $765,000. 

What does that mean and why is the conforming loan limit a big deal?  What difference does it make?

There are two types of loans; conforming and jumbo.   A conforming loan is $417,000 and under.  A jumbo loan is more than 417k and more expensive – typically 1% more in interest rate.

So if a buyer can purchase a home using a conforming loan, they’ll be able to qualify for purchasing that house.  You know the one; it’s been on the market for six months.

All of those buyers who have been on the fence and waiting for the bottom of the market will jump.  It will be the first time we’ll be able to predict the end of a down market.  Most often, we look back and say X was the end of the downturn.  If this piece of the package goes through, we’ll know beforehand.  Although this increase in the conforming loan amount is expected to expire December 31, 2008, it will give new opportunity to many home owners in peril. 

They will have a better chance of re-financing, saving plenty from the fate of foreclosure.  That will decrease the flow of inventory coming onto the market, actually allowing those for sale to sell. 

The ramifications are endless.  All of the real-estate related industries will get back to work.  Those wanting to remodel will now have the funds, hiring contractors, buying supplies, creating garbage for Larry.  The home inspectors will get jobs.  Perhaps the title companies who have layed off quite a few of their staff will be able to bring them back.  Photographers will be getting their shots.  And we’ll all be out buying gas. 

So do your part.  Get to clicking and send an email to your Senate person insisting that they support this and do it quick.

Vicki Moore About Vicki Moore

RE/MAX Star Properties
282 Redwood Shores Parkway
Redwood Shores, CA 94065

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  1. Trinette Sigona says:

    Such great and wonderful information Vicki! I sent my email to the Senators and hopefully now a few more people will as well :0) Pass the word! Yay for a higher conforming loan!

  2. Vicki Moore Vicki Moore says:

    Thanks You!

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