Have you taken advantage of the great rates available on Temporary High Balance or Agency Jumbo loans? If not, you may need to do so sooner rather than later.
With these loans, Fannie Mae and Freddie Mac are authorized to purchase mortgage that are up to 125% of certain high-cost areas’ median home values, not to exceed a preset limit. Implemented as part of the 2008 stimulus package, these loan offerings were intended as a temporary measure. They have already been extended , and limits have been reduced. How much longer they will remain available is not certain yet, but there has been talk of these programs coming to an end.
Because Fannie and Freddie are government sponsored, the rates they offer are likely lower than private entities could afford. With Washington’s current political climate, however, there is talk of the need for private market lenders to step in to provide financing over the normal conventional limits.
As long as your tax dollars are still providing for the existence of these loans, you may want to take full advantage of the lower rates they offer. The opportunity is here now for the purchasing, refinancing, consolidating debts, paying for college, or making home improvements, but the clock may be ticking. The current maximum loan amounts may vary by area.