There were a couple of positive changes for the Palos Verdes real estate market that will be enacted with the approval of the Stimulus Package. The conforming loan limit will be increased to $729,750 for 2009 for our local market. That means you can borrow up to $729,750 at the conforming jumbo rate. Lenders have told me for amounts higher than $729,750, clients have been obtaining a second mortgage so they can still take advantage of that low 30-year fixed rate (4.75%).
This American Recovery and Reinvestment Act of 2009 (when signed by Obama) also increases the first-time home buyer credit from $7,500 to $8,000 and removes the requirement that the credit be paid back. What kind of credit was that anyway if you have to pay it back? First-time home buyers must have purchased a home after January 1, 2009 and before December 1, 2009 to be eligible for the $8,000 credit.
The loan rates above are nearly the same as last month. The good news is that rates have not increased from these historic lows.
