Virginia mortgage rates and industry news

As many of you know, Fannie and Freddie increased the conforming loan limits up to as much as $729,750 (depending on your area) to help homeowners refinance jumbo loans at much more attractive rates.  Notice has just come down that these temporary higher loan limits will be ending very soon, and reduced rates will be ending for these loan limits.  If you owe more than $417,000 and want/need to refinance, the time to act is NOW! 

How soon?  Many lenders want this type of loan closed no later than December 1, 2008 so that they can still sell this product in time to meet their own internal deadlines. 

When should I lock?  For a 30 day lock, you'll need to lock in your rate no later than November 3, 2008.  That's only 1 month away!

Mad dash to the finish line?  You bet!  In fact, thousands of homeowners will undoubtedly be taking advantage of this loan at the very last minute, so expect longer turn times and delays in underwriting.  Right now, the average refinance takes approximately 2 weeks to close.  If you wait until the last minute, it will take a lot more time.

Rates are still too high!  Consider this...Right now these loans have been averaging 5.75% - 6.375%.  Current "traditional" jumbo loans average 7%++.  If you miss your opportunity, it may be a long while before jumbo rates are this attractive again!

As they say...."Ye all have been warned!"

Paul Thistle, President

Loan Planet 

703-753-5747