The Veridian Blog

Today, we are accepting applications for loans at the 2008 maximum high-balance conforming limit of $729,750 as a result of President Obama’s American Recovery and Reinvestment Act of 2009.  Depending on the location of the subject property, this limit can be as high as $729,750.  This limit was reduced on December 31 last year and has now been reinstated – please call us for new rates and guidelines!

Note that some of the best rates are still available only on standard conforming loans of $417,000, but rates for loans in the high-balance conforming range are comparable and substantially better than that of loans in the Jumbo range beyond high-balance conforming limits. 

Many of you wish to take advantage of the historically low rates but like millions of other Americans, have discovered your equity falling below 20% of the value of your home.  What options do you have to refinance?  The answer to this question seems to be changing every month.  For now, here are four ways to go:

1.    Make Home Affordable Act

The new law allows responsible homeowners to refinance their current mortgages with loan-to-value ratios as high as 105% with certain stipulations: most important being the subject property must be owner occupied and the loan must be owned by Fannie or Freddie.

2.    Pay down the balance

An uncomfortable thought for many homeowners now, but if paying down the mortgage to get to 80% will yield a much better rate, then it may be worthwhile.  For those in the high-balance conforming range of loan amounts, the return to the 2008 $729k limit is a welcome sight.

3.    Split the Debt

Turning one loan into two may be a savvy way to circumvent the declining value problem but obtaining a 2^nd loan is getting increasingly difficult and guidelines are not as lenient as they used to be.  Furthermore, the processing time is potentially long and arduous, depending on the lender, and the terms of variable 2nds may not be the type of risk to assume at this point.

4.    Wait

Values will go up again – I can guarantee it.  The question is just “when”.  For some of us, we can afford to wait to see.  By the time they do, lending standards will have already loosened up from today’s ultra-conservative approach.  I don’t think they will every return to the neg-am “free money” days of years ago, but they will be more accommodating to those with strong credit and/or equity and bend more with income and asset documentation.

The day has finally arrived for those of you who have been waiting patiently on the sidelines, responsibly making mortgage payments and unable to take advantage of these suptuous interest rates.

As a result of President Obama's Make Home Affordable Act, we are now offering refinance opportunities for those homeowners who haven't been able to qualify up until now, because of declining home values.  There are conditions to qualify of course, starting with the fact that your loan has to be owned by either Fannie Mae or Freddie Mac - this doesn't mean you write your check to them every month.  To find out click here:

https://ww3.freddiemac.com/corporate/

or, here:

http://loanlookup.fanniemae.com/loanlookup/

and let us know!

Other conditions apply - the subject property must be your principal residence, you can't exceed 105% loan-to-value ratio, among others.  Please call us to inquire...

Hi Everyone,

Despite a 25-year high unemployment rate, Friday’s bond market found itself in negative territory extending losses from Thursday’s sell off as investors flocked to equities.   The Labor Department reported a rise in unemployment to 8.50% during the month of March with 663,000 jobs lost during the month.  That totals over 2 million jobs lost in 2009 year-to-date which in perspective, is already the fourth worst year on record so far – and we still have 3 quarters to go! 

Typically, this is great news for bonds and low mortgage rates offer a silver lining as the economy plunges into new depths.  Last week, however, rates increased after the big report – likely due to bond investors expecting a worse reading. 

This week we can expect a roll-out of some Making Home Affordable programs on the wholesale level, followed later in the month by the reversion of the high-balance conforming limit back to $729,750 in the Bay Area.