The new Economic Stimulus Act of 2008 is more then just a rebate in your pocket – though who couldn’t use and extra $600 or $1200 in their hand? If you’re a homeowner or a new buyer shopping for a California home loan or home equity line of credit, then there is even more good news for you then just your rebate. The new stimulus package is also designed to help certain “high-cost regions” that are currently plagued by a struggling housing market.

The new bill calls for a temporary increase in the conforming loan limit from $417,000 to as high as $729,750 in specified areas. So what does this mean for you? Well Orange County is one of these high-cost regions and the increase in the conforming loan limit could help you avoid higher interest rates associated with non-conforming or jumbo loans. This means that you can buy a new home or even refinance you current mortgage at a lower rate then you could have before the change in limits – which will save you tons of money of the course of your loan.

Remember though, it is harder to get a California home loan at the moment, so your credit score is more important then ever.

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