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Bruce McCoy
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Freddie Mac and Fannie Mae have just announced there is no change in the conforming loan limits for 2007. In California the loan limit for a single family home will remain at $417,000.
Fixed mortgage rates have drifted lower over the last few weeks, while adjustable rate mortgages have moved higher. If you find yourself in an adjustable rate, and are planning on keeping your home for the foreseeable future, you probably want to explore a refinance into a fixed rate for your peace of mind.
Freddie Mac and Fannie Mae are due to announce the new conforming loan limits at this time of year. In previous years the lenders and banks have tried to anticipate what the new limit may be; however, it has been extremely quiet on that front this year. I have even heard rumors of the conforming limit declining for only the second time in history. If you have a loan that is pushing the current $417,000 conforming limit, that may be another reason to look at a refinance.
We hope you had a plentiful Thanksgiving and have a Merry Christmas!
Fixed rates for conforming loans (under $417,000) as of 11/22/06 (p.m.) are:
Rates quoted are for 0 points.
30 year fixed: 6.125% (APR 6.198%) payments are $2,533.74/mo.
15 year fixed: 5.75% (APR5.87%) payments are $3,462.81/mo.