According to the National Association of Realtors (NAR), the passage of the economic stimulus package and the increase in FHA loan limits will help an additional 138,000 Americans achieve the dream of homeownership and will allow nearly 200,000 homeowners to refinance and potentially keep their home, according to NAR research.
In addition, NAR believes that increasing the loan limits for Fannie Mae and Freddie Mac will bolster the severely stressed housing finance market by immediately infusing much needed liquidity into the nation’s mortgage market. “While such an increase will not solve the full range of housing challenges, it will play a vitally important role in improving the nation’s economy and making the dream of homeownership more attainable for thousands,” said Gaylord.
An economic impact study conducted by NAR earlier this month estimated that increasing the GSEs’ conforming loan limits would result in as many as 500,000 refinanced loans and could help reduce foreclosures by as much as 210,000. In addition, over 300,000 additional home sales could be generated, housing inventory would be reduced and home prices would be strengthened by two to three percentage points. “These are real results and will have an immediate and sustainable impact for families across our country,” said Gaylord.
If you have been in a jumbo loan, it will probably benefit you to either do a conforming refinance or an FHA refinance in the near future. And if you are just one of the poeple who are in a subprime loan and are wondering if an FHA mortgage refinance is right for you, there is no better time than now to find out! There will be a serious wave of FHA refinancing coming soon.
See more about the entire stimulus package at bloomberg.
