Possible Help for Your Mortgage Woes

If you have a mortgage that was larger then the Fannie Mae and Freddie Mac maximum loan size of $417,000 then this post is for you.

President Bush signed a law in February that is going into effect right now that allows Fannie Mae and Freddie Mac to make loans as large as $729,750 in some markets and between $417,000 and $729,750 in others.

What does this mean? This means that these quasi-government lenders can make loans that will be backed by the Federal Housing Authority (FHA) making it easier for homeowners in these markets to get a jumbo loan or to refinance if their current mortgage if they’re in between a rock and a hard place.

Here in Northern Virginia the new limit is at the new maximum allowed, $729,750, and there is hope that this will begin to turn the tide in the right direction for the local real estate market. Turning this financial blood bath around is in all of our interest as the amount of money that is evaporating is is enormous and threatens to drill our economy into far worse then a typical recession. Let’s hope it helps.

For more information on the new law you can visit the government site at: Office of Federal Housing Enterprise Oversight (OFHEO)

For details on what the new higher limits are in your area visit: FHA Backed Jumbo Loan Limits By Area.

For keeping track of interest rates, mortgage news, calculating payments in different scenarios I use this great site: BankRate

For two years I worked as an Account Executive for a large mortgage lender so feel free to ask questions via the comments.

Money be good

If money is the root of all evil then I’m glad I’m not a branch.

The financial industry and our personal finance routines may have undergone more significant changes then any other industry or area of our personal lives. How the industry and we operate in the internet age bears little resemblance to the way things were 20 years ago.

We’ll make sure dads are aware of the best available tools and resources as they come available.