Berkeley CSUA MOTD:Entry 49003
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2025/05/28 [General] UID:1000 Activity:popular
5/28    

2008/1/24-31 [Finance/Banking, Reference/RealEstate] UID:49003 Activity:nil
1/24    Yay!  Conforming loan limit to be raised to $625,500 for Santa Clara
        \_ What does this mean?         -not a homeowner, but want to learn
           \_ Housing loans under X amount get goverment funded loans that
              are at lower intrest rates.  A jumbo loan is a loan for over
              that amount and intrest is about 1 1/2 percent more.  By raising
              the cap they are basically making more expensive houses cheaper
              to buy (cause the intrest rate is less, and loans are easier to
              get.)  They are trying to reinflate the bubble.  Yay?
              \_ I see, so what prevents stupid people from getting exactly
                 $625,500 for the first loan and another $300,000 for
                 the second loan? And how do you look up the rate
                 limit for the area you live in? Thanks.        -pp
                 \_ Until recently the limit was country wide.  Don't know
                    how the look up works.  As to the second, you could
                    do that but because how second mortgages work they tend
                    to be even higher intrest rate.  (Basically if a house
                    forecloses and is sold the entire first mortgage is paid
                    off before the second mortgage gets a crack at it, I'm
                    not sure how liens work.)  Some people do manage to get
                    a cheaper deal by doing what you suggest, but it still
                    more expensive than not needing a jumbo loan.
                 \_ piggyback loands are done ALL THE TIME.  it's cheaper
                    than one huge jumbo.  of course, if you have the down
                    payment, then a single conforming is best of all.
                    the conforming limit is currently $417K countrywide
                    except hawaii and alaska (+50% higher).
                    the proposed plan says median price of the "metropolitan
                    area" + 25% should be the new cap.  however, the numbers
                    need to be made consistent between the house/senate
                    versions, looks like feb 15 is target sign date.
           \_ it's an experimental erectile dysfunction pill for the CA real
              estate market, FDA approval and short-/long-term effects TBD
              Santa Clara    = rock hard
              East Bay       = softening
              San Bernardino = flaccid
        \_ !swami says this is step one for a complete federal (i.e.
           taxpayer) bailout of the mortgage mess (i.e. banks).
           \_ !swami also says this is basically legalized theft.
2025/05/28 [General] UID:1000 Activity:popular
5/28    

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