No Changes for "Jumbo" Loan Limits

The Federal Housing Finance Agency (FHFA) recently announced that there will be no changes for the maximum conventional loan limits in 2013. This is referring to base and high-cost or "jumbo" conforming loans, whether it is a first-lien or a second-lien.

Keep in mind that these loan limits apply to the original loan amount of the mortgage loan, not the balance at the time of purchase by Fannie Mae or Freddie Mac.  Read more about these loans directly from Fannie Mae's Lender Letter.

If you are wondering what the high-cost limits are, we've compiled a basic list. These are the applicable loan limits in 2013 for a one-unit property. The following states and counties will remain as is:

California:  $417,000 (all counties except as follows)

•  $463,450: Alpine
•  $474,950: El Dorado, Placer, Sacramento, Yolo
•  $477,250: Nevada
•  $483,000: Monterey
•  $520,950: Sonoma
•  $529,000: Mono
•  $546,250: San Diego
•  $561,200: San Luis Obispo
•  $592,250: Napa
•  $598,000: Ventura
•  $625,500: Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Francisco, San Mateo, Santa Barbara, Santa Clara, Santa Cruz

Dist. of Columbia: $625,500

Georgia:  $417,000 (all counties except Greene County—conforming jumbo loan limit is $515,200)

Indiana:   $417,000 (all counties)

Maine:    $417,000 (all counties)

New Mexico:  $417,000 (all counties)

New York:  $417,000 (all counties except as follows)

•  $625,500: Bronx, Kings, Nassau, New York, Putnam, Queens, Richmond, Rockland, Suffolk, Westchester

South Carolina:  $417,000 (all counties)

Texas:  $417,000 (all counties)

We apologize if your state is not listed. If you do have any questions, feel free to call 888-883-5252 or take advantage of the live chat feature here.

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Mortgage Default Rates Drop as Economy Improves

As the economy continues to improve, consumer debt continues to decline. Because Americans now have less debt overall, consumer default rates have decreased for mortgages and automobiles alike! This means that the financial condition for consumers is getting better as the economy stabilizes.

The national default rate for mortgages fell to 1.31 percent in the month of April, which is down from 1.41 percent in March.  This data is according to S&P Dow Jones and Experian Consumer Credit. They've worked together to build a comprehensive measure of the changes in consumer credit defaults. Mortgages are doing well, but bank cards saw a small increase in default rates.

Unemployment rates are still somewhat high, but the good news regarding the decline in default rates indicates that the recession is truly behind us. Some cities have reached new post-recession lows in regard to default rates.

If you feel you are in danger of defaulting on your mortgage, seek financial help! Perhaps refinancing could save you from your situation. View the links to the right for information on a couple companies that we'd recommend!

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Rates Rising: Lock It In While You Can!

After weeks of falling, the mortgage rates have recently rose to their highest point in six weeks. Previously pressing to set record-lows, the current mortgage rates for a 30-year mortgage are averaging 3.51 percent.  The average 15-year rate also increased to 2.69 percent.

Earlier this month, the 15-year rate set a record-low at 2.56 percent. Last November saw the lowest rate for a 30-year mortgage with an average of 3.31 percent. Most recently, we saw 3.35 percent.

With the rates steadily climbing again, we tend to encourage borrowers to lock in these somewhat low rates while they can. There is no guarantee that they will drop again since the housing market is recovering and home prices are increasing. There is an increased demand for homes due to a tight inventory. The whole market seems to be growing more and more competitive. Home buying season has been strong and moderately priced homes are selling fast!

California currently holds 8 out of 10 spots on the list of markets with the largest increase in median list price throughout the country. This means that these markets were hit the hardest by the crisis and are in turn rebounding the highest now that the housing recovering is gaining momentum.

Visit the links on the right side of this page to find the right company for you.

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HUD Will Sell Thousands of Delinquent Mortgage Loans

Although the economy is improving, there are still many severely delinquent mortgage loans. HUD plans to sell 20,000 distressed loans that are insured by the FHA in an effort to deepen the inventory and bring relief to areas hit hard by foreclosure.  Its Distressed Asset Stabilization Program (DASP) will help with the sale of these loans and help to stabilize the nation's communities.

HUD has sold delinquent loans before, and previously did so by conducting note sales. There are two auctions planned, one for June 26th that will handle the sale of 15,000 notes through "national pools" and another auction on July 10th that will offer 5,000 notes through Neighborhood Stabilization Outcome (NSO) pools. The NSO pools allow qualified bidders notes located in Southern California, Chicago, Southern Ohio, and North Carolina. In addition, HUD is expanding the use of single-family loan sales by including a competitive bidding process in which loan pools are sold to the highest bidder.

“We’ve seen a tremendous response to our note sales which allow us to support particular areas of our country hard-hit by foreclosures while improving outcomes for FHA,” said FHA Commissioner Carol Galante. “These auctions allow us to continue stabilizing hard-hit housing markets and to improve FHA’s overall financial position at the same time.”

HUD expects to sell more than 40,000 distressed loans this year. These sales will help to reduce the FHA's total claims costs and increase recovery on any loses the FHA may have experienced regarding their Mutual Mortgage Insurance Fund.  The severely delinquent FHA-insured loans will be sold competitively at a market-determined price. Generally, the price will be well below the outstanding principal balance. When the loan is purchased, foreclosure is delayed for six months and the new servicer has time to help the borrower find an affordable solution to avoid foreclosure.

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Record or Near-Record Low Mortgage Rates!

The economy is still gradually improving day by day, and that may mean that you are making more money now. Or maybe not. If you are in need of lower monthly mortgage payments, now would be an excellent time to refinance!

Just this week, the fixed mortgage rates have once again dropped! In fact, the 15-year average rate hit a new record low of 2.56%!!  The 30-year record low mortgage rate is 3.31% and the current rate has dropped down to 3.35% which is almost as low as it could be!

As mortgage professionals, we want to take the time to encourage you to seek more information about refinancing your home. Right now is a great time to take advantage of the low rates! The economy is strengthening and the rates continue to fall for the 5th consecutive week.

"Mortgage rates eased somewhat following the release of the advance estimate of real GDP growth for the first quarter of the year, which rose 2.5 percent but fell short of the market consensus forecast. The latest GDP report confirmed that the housing sector has become an important contributor to the economic recovery,” said Frank Nothaft, vice president and chief economist of Freddie Mac. “Residential fixed investment added to overall economic growth over the past eight consecutive quarters and contributed more than 0.3 percentage points in growth over the first three months of this year. Moreover, near record low mortgage rates should further drive the housing market recovery over the near term."

Take a look at this mortgage rate chart (brought to you by Freddie Mac).

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