Fountain View (Fountain Valley, CA)
By Joseph David, CMPS
(Clarion Mortgage Capital, Inc.)
By now, we have all heard the good news of increased lending limits in high cost areas, and tax rebates to help stimulate the economy. On the surface, we all rejoice now that more loans and with less restriction will become available, right?This is what's happening: The US House of Representatives overwhelmingly passed HR 5140 recently - an economic stimulus package that includes a temporary increase in the conforming loan limit and the upper threshold for FHA loan programs to as much as $729,750 in high-cost areas.  The temporary increase would last only until the end of 2008.  This bill would also restrict Fannie Mae, Freddie Mac and the Federal Housing Administration from guaranteeing or purchasing loans above 125 percent of the median home price for a given area.  Plain English plea...
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By Joseph David, CMPS
(Clarion Mortgage Capital, Inc.)
Dear reader,The Federal Reserve surprised the market this morning with a 75 basis points rate cut... What Does This Mean For YOU?  In order to answer this question, it is helpful to understand the four major interest rates that are affected by the Fed:Discount Rate (currently 4%) - the interest rate that banks pay when they borrow money directly from the Fed. The rate has been largely symbolic in the past because hardly any banks take the Fed up on their offer these days!You see, banks prefer to get short term financing by:Issuing "commercial paper" - these are short term IOUs of typically one to ninety days that are sold on the open market to Wall Street investors. Interest rates on these short term loans are often better than the discount rate offered by the Fed Borrowing money from o...
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Fountain Valley, CA Real Estate Professionals