Rates for High-End of the Market to Go Up this October By Sara Sutachan, senior research analyst
May 13, 2011
With the anticipated winding down of the two mortgage giants Fannie Mae and Freddie Mac, the future is uncertain for everyone from the potential homeowner to real estate agents and just about everyone employed in the real estate field. The one thing we do know for certain is the temporary high-cost loan limits are set to expire as of October 1st. This will impact housing finance across the board, especially in California where the maximum loan limit of $729,750 will drop down to $625,500 by the end of this September. This will definitely impact the ability and ease of securing a loan and push borrowers into higher rates for home loans over and above the loan limit. On the street, the change will most likely affect open escrows starting sometime in late July/early August as the lenders might be required to fund those loans prior to the September 30th deadline.
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