Jumbo Loans are here today but may be gone tomorrow. Have you taken advantage of the options available on Temporary High Balance or Agency Jumbo loans? If not, you may need to do so sooner rather than later. With these loans, Fannie Mae and Freddie Mac are authorized to purchase mortgages that are up to 125% of certain high-cost areas median home values, not to exceed a preset limit. Implemented as part of the 2008 stimulus package, these loan offerings were intended as a temporary measure. They have already been extended once, and limits have been reduced. How much longer will they remain available is not certain yet, but there’s already talk of them ending very soon.
Because Fannie Mae and Freddie Mac are government sponsored, the rates they offer are likely lower than private entities could afford. With Washington’s current political climate, however, there is talk of the need for private market lenders to step in to provide financing over the normal conventional limits.
As long as your tax dollars are still providing for the existence of these loans, you may want to take full advantage of the lower rates they offer. The opportunity is here now for purchasing, refinancing, consolidating debts, paying for college, or making home improvements. But the clock is ticking.
The current maximum loan amounts vary by area. We would be happy to speak with you to assess the possible benefits and applicability for our personal situation and see the California County Report here for specific loan limits.