Financing in San Jose>Question Details

Joyce, Other/Just Looking in San Jose, CA

Can I refinance my jubmo loan into regular loan if the loan limit raise?

Asked by Joyce, San Jose, CA Wed Feb 13, 2008

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I just want to make sure everyone is clear on this new conforming loan increase. HUD still needs to finalize the numbers based on median home prices in each area (MSA). They have up to 30 days to do this. I have even read reports saying it could take 60 days. I believe someone said this takes effect immediately but I can assure you that is not accurate. As soon as HUD finalizes the numbers then the lenders will be able to start making loans under the new loan limits and guidelines.
1 vote Thank Flag Link Thu Feb 14, 2008
The new conforming loan limits in the San Jose area will be $729,750. However, this will not be finalized for a little while. HUD still has to finalize the median home prices to determine the new loan limits and lenders will also need to make changes to their guidelines and systems. As Michael said, it depends on the value of your home and how ,much equity you have . Assuming you have at least 10% equity (preferably 20%) then you should be ok refinancing.
1 vote Thank Flag Link Wed Feb 13, 2008
Conforming Home Loan Limits in Orange County have temporarily increased from:
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0 votes Thank Flag Link Sat Mar 22, 2008
It's official. Loan limits have now been raised up to $729,950 in Santa Clara County. Great news. Talk to your lender now about your refinance. I don't do loans but I work with a reputable lender that can help if you need it. You can contact me at my website below.
0 votes Thank Flag Link Thu Mar 13, 2008
I wouldnt hold your breath on weeks, although i wish it were tomorrow. Talking to my bank contacts and lenders, i have been hearing 2-6 months. 6 months seems like the favorite as from talk the last FHA change of this caliber took almost 6 months to implement.

With that being said we could see an extension in time for this loan limit increase, or hopefully an overall adoption of it.

Keep checking in.
0 votes Thank Flag Link Tue Feb 26, 2008
John....

I just received this email from the California Association of Realtors since my last post. Hope it helps.

PRESIDENT SIGNS $168 BILLION ECONOMIC STIMULUS BILL
President Bush today signed off on the $168 billion stimulus package approved by Congress last week, which, in addition to tax rebates for millions of working Americans and business owners, includes a vital, but temporary increase in the conforming loan limit. The economic stimulus package will allow the Federal Housing Administration, as well as Fannie Mae and Freddie Mac to offer mortgages above the current conforming loan limit of $417,000 to as much as $729,750 in high-cost areas for loans originated between July 1, 2007 and Dec. 31, 2008.
0 votes Thank Flag Link Wed Feb 13, 2008
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
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Joyce it would be good to discuss your situation with a mortgage broker. If you need a reference I have some to give you. Good luck.
0 votes Thank Flag Link Wed Feb 13, 2008
I understand that eventhough the higher limit will fall under conforming loans, that there may be higher interest as well, since the higher amount is still a higher risk to the investor.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Wed Feb 13, 2008
Joyce.....

The president signed the bill today and it is my understanding that it is effective immediately and the loan limit will remain till the end of the year. If you have equity in your property you should be able to refinance to fall under the conforming loan limits. I would consult with your local lender to see if you and the property qualify. Good luck.
0 votes Thank Flag Link Wed Feb 13, 2008
Pam Winterba…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
Joyce, yes you can but it depends on the value of your home. If the value of your home has gone down recently you may not be able to. Lenders t ypically will only refinance if your loan is a maximum of 90% of the value of your home.
0 votes Thank Flag Link Wed Feb 13, 2008
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