You’re faced with the challenge of informing your clients about how the rapidly changing real estate and credit markets are affecting them locally. I’m here to help.

I’ve worked in the mortgage industry for 12 years, and I’ve funded over 1000 loans in my career – and I’ve seen this market hit many highs and survive some tough lows. Let me be your resource as you cover this rapidly changing market.

In February, the President signed into law the Economic Stimulus Package in an effort to revive our battered economy. I wanted to be sure you knew that the legislation is about more than just rebate checks; it can also have a positive impact on current and future homeowners.

Many of your readers may not be aware of how this bill could create opportunities to save money on their home financing. Here are some of the questions I believe your readers should consider, and I would be happy to lend my experience and expertise to help explain how our community may be able to take advantage of the temporary rules created by this important legislation:


What impact does the Stimulus Package have on borrowers?
• The Economic Stimulus Act of 2008 is a $168 billion plan intended to jumpstart the sliding U.S. economy. The new bill is designed to help certain ‘high-cost regions’ of the struggling housing market by

1) Temporarily increasing the ‘conforming loan limit’ from $417,000 to as high as $729,750 in specified areas; and

2) Temporarily increasing the size of loans the Federal Housing Administration
(FHA) can insure from $362,000 to as high as $729,750 in specified areas.”

What do these new provisions mean for your community?
• For those looking to purchase or refinance real estate in a ‘high-cost region,’ this is great news. These temporary increases could help consumers avoid the higher interest rates associated with ‘non-conforming’ or jumbo, loans – which are currently more than a point higher than rates on conforming loans. This means more consumers will be able to take advantage of great real estate deals and get more home for less money. In fact, many homes that some borrowers could not afford just a few years ago could now be within reach, thanks to this temporary government program.

The Stimulus Package is also very good news for homeowners looking to refinance out of their expensive jumbo loan and into a new ‘conforming loan.’ While the legislation limits new mortgage contracts to 2008, it does not exclude the refinancing of any past mortgages. This means that, if borrowers qualify, they can take advantage of the new conforming loan limits no matter how many years have passed since they obtained their mortgage – as long as they get it done before the end of 2008.”

How is a high-cost region determined? And does your community qualify as one?
• A high-cost region is typically determined by the median value of its homes. The median value is the specific price that is halfway between the least expensive and most expensive home sold in an area over a given period of time. Not to be confused with the average home price, the median home price is the price at which half of all buyers bought more expensive homes and half of all buyers bought less expensive homes. If that sounds confusing, don't worry. It is the responsibility of the Department of Housing and Urban Development (HUD) to determine and publish what the median home price is for regions across the country. I can easily access and interpret these figures for our local residents, and help them calculate the new conforming and/or FHA loan limits within minutes.”

I look forward to hearing from you all. My contact information is listed below.

Kindest regards,

Joe Gonzalez
Branch Manager
www.1stmetropolitan.net

I don't either. I'm a mortgage broker & the only REAL thing this plan has done for us in the mortgage industry is provide headlines that encourage people to call & figure out how this affects them. Unfortunately the plan is majorly flawed. Now for the consumers in the few counties spread throughout the country that are included, from a mortgage perspective that is, this is fantastic news. Again this is a small minority. So we are reaching out to those individuals & telling them to take advantage while they can.

Let me clarify further. Please take into consideration the masses who watch CNN, MSNBC etc every night or who get involved in water cooler talk. Co-worker #1 "Hey did you hear the government is going to give us $600 this year?" Co-worker #2 - "Yeah I heard something about that. They're finally going to give us something back! I'm going to go out & buy (insert frivolous spending item here)!"

You & i may know better but we are not the masses!

Realistically, the rebate itself isn't going to change anything. People are going to spend it to pay bills and then it will be gone. Of course it will be nice, I mean who DOESN'T want a few hundred extra dollars? But no it is not going to make a big difference in our economy.

I feel that the lending provisions that Joe was just talking about are going to have more of an impact, but only if people are able to take advantage of them. With the housing crisis banks are finding themselves the proud owners of lots of foreclosed real estate, which they are not terribly pleased with. Accordingly it is becoming incredibly difficult for average people to even get a mortgage. I have had several potential buyers for a property I own fall through because their financing wasn't approved.

The Economic Stimulus Package is nice but it is going to take a LOT more to put a dent in our financial problems.

Rob
http://YourWealthBeginsHere.com --I prefer to deal with financial problems by increasing and diversifying my sources of income (your day job just won't cut it anymore)

I don't get how a couple hundred bucks a person is really going to make a difference....


http://consumerdave.blogspot.com