New Fed Rate and VA Update

New Fed Fund Rate and other News! October 30th, 2008 2:48 PM

Wow! The Federal Reserve has lowered the rate down to 1%. We have not seen this low of a rate since the technology bubble in the beginning of the the decade. There is talk that they might again lower in the ending of the year. This will help anyone that has a home equity loan on their home(s). With this move the Asian Stock Markets have rallied quite a bit from this downward move with our lowering of the Fed Rate.

We just received a Bulletin in regards to VA Loans... any person who is eligible for a VA Loan and wants to refinance to pull cashout can now go to 100% of the appraised value. Where before you could only have a max of 36,000 cashout. This will help alot of people out there that needed this help. So depending on which county you are in varies for the " new loan limit increase" that Freddie Mac has for conforming loan limits. On October 10, 2008, the President signed S. 3023, the Veterans' Benefits Improvement Act of 2008. Following are the three major impacts to the VA Home Loan Guaranty Program:

1. Authority to guarantee adjustable rate mortgages (ARMs) and hybrid adjustable rate mortgages (HARMs) has been extended through September 30, 2012.

2. The maximum guaranty for cash-out refinance loans has been made the same as purchase loans - they are no longer limited to $36,000. In addition, cash-out refinance loans may now be made up to 100% of the appraised value of the home.

3. The temporary increase to the maximum guaranty has been extended through December 31, 2011. When combined with new locality-based Freddie Mac conforming loan limit in January 2009, VA's maximum county "loan limit" will be $1,094,625 ($1,641,937.50 in Alaska, Guam, Hawaii, and the Virgin Islands). This results in unique county "loan limits" for VA.

Please watch for other mortgage news as it becomes available.

Have a Happy Halloween!