As I've heard President Bush will be signing the bill next week itself. So, I suppose it won't take much time for lenders to have their programs in place. _________________ Procrastination is the enemy of your financial sucess
Posted: Sat Feb 09, 2008 4:52 am Post subject: RE: Impact of Economic Stimulus Bill
Hi Ed,
Welcome to our community forums.
The Economic Stimulus Bill has been passed by the Senate and will be shortly signed by the President. It aims to provide tax refunds to besides bringing about significant changes in the mortgage market too.
The Bill redefines the non-conforming or jumbo loan by extending its limit to $729, 750 from $417,000 in high cost areas for 1 year. So, this is good news for home buyer willing to settle in high costs areas as they can avail benefits now limited to conforming loans, that is an interest rate 1% lower. That is, if they go for a mortgage worth $417, 000 or less, they would get 1% lower than the new conforming limit which is $729, 750.
I think this will open up more opportunities for those willing to buy as well as those interested in refinancing. This is because when credit is hard to get, you don't find buyers and housing prices decline and people can't refinance existing subprime and other loans. So, the bill hopes to open up the market for homeowners as well as help them save thousands of dollars in interest.
However, the Bill may not be a boon for troubled borrowers living in areas where home prices are on a decline and are much below what they owe on their mortgages. Therefore, such borrowers cannot refinance into loans which are offered by Fannie and Freddie Mac approved lenders.
President Bush reveals on an interview that he is going to sign this Economic Stimulus Bill on this Wednesday. Low-income people, retirees who live on Social Security and the disabled veterans who do not pay income any taxes, will get checks of $300.
ed
