President Obama just signed an extension to the high balance conforming loan limits ( $729,750) for high-cost areas like San Mateo County. This loan was created as part of the The Housing and Economic Recovery Act of 2008 and has to be extended each year.
The higher the loan amount, the more the risk the bank is taking which results in a higher interest rate for you.
The high balance conforming jumps into the middle of a conforming loan (loans up to $417k) and a jumbo loan.
Steve Goddard, president of the California Association of Realtors, “We applaud our congressional representatives for their actions to extend the higher loan limits through 2011. Without the extension of the higher loan limits, many California borrowers would have a harder time refinancing homes and obtaining financing for new home purchases. We hope Congress will now focus on making higher loan limits permanent.”
Need help navigating the new world of loans? Call Rick Vujovich at Wells Fargo. 415-999-4474.