August 20, 2017

Seattle & Bellevue Real Estate Mortgage Rate Watch for 9/23/10 and a “Call to Action”

News impacting rates and a “CALL TO ACTION FOR HOMEOWNERS”.  A bill that was introduced by Representative Brad Sherman (D) to make larger loan limits permanent needs your support. 

WE FIRST WANT TO EXPRESS THAT WE ARE NOT REPORTERS NOR ARE WE SIDING FOR EITHER POLITICAL PARTY, WHAT WE ARE STANDING FOR IS HOME OWNERSHIP AND A WAY TO VOICE OUR CONCERNS FOR FINANCING AND VALUES IN REAL ESTATE.

Q: How does this impact me as a home owner?

A: With real estate values on already shaky grounds if the current “Temporary Loan Limits” were to expire values could drop further.  This is due to the availability of financing for higher priced homes becoming even more difficult.  This “Temporary Loan Limit” is set to expire at the end of this year.

Q: How do you define a higher priced home?

A: Currently the conforming loan limit for King County, Washington is set at $417,000.  The “Temporary Loan Limit” is set at a max loan amount of $567,500.  

Q: What would happen if the “Temporary Loan Limit” were to expire?

A: Consider a home at $600,000 with 20% down.  The loan amount would be $480,000, within the “Temporary Loan Limit” but above the “Conventional Loan”.  If the “Temporary Loan Limit” did not exist two things would happen.  A new buyer would have to make a larger down payment of 30%, WHY because currently there is no option available for mortgage insurance with Jumbo Loans.  Second underwriting is more restricted on JUMBO with tighter guidelines, creating in more ripples in the real estate market.

Also right now FHA financing is available in King County up the$567,500 loan amount.  This creates many opportunities for the right home buyers to purchase a home up to $587,000 with just 3.5% down.  If the “Temporary Loan Limit” is eliminated then you also take all of these qualified buyers off of the market, in turn creating more housing inventory and a even more sluggish housing recovery.  Ultimately leading to lower home values across the board. 

This is a true CALL TO ACTION for every home owner and future home owner in every market place.  It is time to speak out and have a voice and show support for the value of your home.  Fight to keep values from declining.  Fight to keep our economy from returning to another recession.  Media is not covering a crucial bill like this that needs support. 

Below is a link to put you in contact with your Representative who need to hear from you, express your concern that this bill needs to be in place so that we do not have further declines in housing values. 

https://writerep.house.gov/writerep/welcome.shtml

Here you can look up your representative by zip code and be directed to their contact page.

In the body of your text you would want to express your support to have the “Larger Temporary Loan Limit be made permanent.  This was originally introduced on May 19, 2009 as H.R. 2483.  More information can be found here about H.R. 2483 ”  This limit is set to expire at the end of 2010.

Please leave us any feedback if you support or do not support this call to action below. 

Again we are not lobbying for politics but sincerely concerned for any support we can have to assist in the housing recovery.

The Mortgage Reel Team

 




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