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Follow on Google News | Increased Ferderal Loan Limits Lower Price Tag on Hundreds of Thousands of LoansMortgage Planners can Help Potential Homeowners Reduce Monthly Payments by Choosing the Correct Federally-backed Loan Product While the Temporary Increase is in Effect.
By: Andy Dilts, Dilts & Associates Increased Federal Loan Limits Lower Price Tag on Hundreds of Thousands of Loans Mortgage Planners can Help Potential Homeowners Reduce Monthly Payments by Choosing the Correct Federally-backed Loan Product While the Temporary Increase is in Effect Vadnais Heights, MN, September 25, 2008— one immediate benefit of The Economic Stimulus Act of 2008 is the increase in loan limits for high-cost areas of the country. By raising the Federal Housing Administration’ “This is a wonderful opportunity for those now paying a premium to live in high-cost states to lower their payments by switching from what was considered a subprime or jumbo loan to a federally-guaranteed loan at today’s low rates,” states Andy Dilts, a Mortgage Planning Specialist with Dilts & Associates of Bell Mortgage, a mortgage company based in Vadnais Heights, MN. “The right loan product can go a long way toward maximizing equity position while minimizing risk.” HUD Secretary Alphonso Jackson was optimistic about the number of people who would benefit from the temporary increase. "The stimulus is providing immediate relief to homeowners," FHA loan limits that will range from $271,050 to $729,750 with the largest loans available in high-cost metropolitan areas such as New York, Los Angeles, San Francisco and Washington, D.C. But even smaller markets could see increased activity in the housing market when the new loans become available. Dilts predicted the new rules would allow thousands of local families to access equity in their homes and make homeownership a reality for thousands more. “This is good news for people who were otherwise paying a penalty for living in areas where median priced homes required jumbo loans with higher fees,” Dilts stated. Regardless of the market, however, there is no universal optimal choice of mortgage product and potential borrowers are advised to contact a knowledgeable and reputable mortgage professional who can evaluate their current financial situation, consider their goals and capabilities, and take these factors into account when advising about potential mortgage options. “I take numerous factors into account when evaluating a borrower’s fit for a specific type of loan,” says Dilts. “There are far more factors than monthly payment and interest rates. I always consider the borrower’s spending habits, capacity to save, risk tolerance and future goals. A good loan choice is the one that works best for the specific borrower. Suitability is absolutely critical for the deal to make sense.” # # # Since 1880, Bell Mortgage has been a pioneer in the mortgage business in Minnesota. Bell enjoys a successful and enduring history that is unmatched by any of its competitors. End
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