If you’re living in a high-cost area of the country you need to know that the conforming loan limit standing between you and a jumbo mortgage expires October 1st. Unless Congress gets off their collective butts (highly unlikely given what’s been going on in Washington) and extends the measure that raised the limit as part of the economic stimulus this measure will expire in October. If you’ve been putting off your mortgage refinance now is the time to take action because if you wait mortgage refinancing will be more expensive for you come October. Here’s an article on HSH.com explaining how the conforming loan limit will affect homeowners with mortgages over $417,000:
Time is running out…If you live in a “high-cost” area of the country, be on the lookout. As of October 1, 2011, conforming loan limits in designated “high-cost” areas of the country–like Washington, D.C. and San Francisco–are about to drop to $625,500. What does this mean? It means that in the blink of an eye, you may go from a conforming loan to a jumbo loan.
If you decide now is the time for your mortgage refinance you’ll want to pay close attention to the fees you’re paying for loan origination and closing costs. Because mortgage refinancing rates are at record lows many lenders have started inflating fees, not to mention slipping in a number of junk fees you need to avoid. The test of how good of a deal you’re getting on your mortgage refi comes not just from getting the lowest refinance rates but how much you’re paying at closing. The reason fees are so important is that you’ll have to recoup these out-of-pocket expenses from your lower payment about before gaining any benefit from your new home loan.
You can learn more about avoiding junk fees while getting today’s best mortgage refinance rates by checking out my free Underground Mortgage Videos.