Conforming loan reduced to $625,500

I would like to add that this is assuming congress does not extend the $729,750 conforming loan limit.

shong,

Do you really think (from your professional experience) that this will have any affect on the NYC market?

You must have reviewed thousands of applications, are a large percentage of folks cutting it so close that this would make much difference?

shong,

Do you really think (from your professional experience) that this will have any affect on the NYC market?

You must have reviewed thousands of applications, are a large percentage of folks cutting it so close that this would make much difference?

Holy crap, the sun will come up tomorrow

Man, did you hear what Shong said? MY future 3 bdrm just dropped in price by $104,250. Where is that 2010 997 TT with ceramic breaks be at?

IN MY PROFESSIONAL EXPErIEnce, like lemmings to lemming juice... MOST PPL max their leverage and borrow from bums, neighbors, uncles, aunts even hated cousins to pull NYC RE. If you think the gay uncle from Sweden is gonna front an additional $100K for you to say I "own", i got some rainbow unicorns for ya....

bugelrex - in my opinion, I dont think this will have a big impact on the NYC market. And there wont be a large percentage of people that fall into this but there are some people that this will matter greatly. Anything above $625,500 will be considered jumbo which means higher rates and more stringent guidelines. I have some clients where the monthly difference is enough for them to change their home buying approach. This affects FHA limits as well. I think it will have the most impact on home prices around 700k-1M.

Thank goodness. That will only affect 5,116 units out of the 12,300 units for sale in manhattan today. Whew! I thought lower money for product shifts the demand curve down and would affect prices unless unless unless oh my god!!!!!, supply is vertical line!

I know why nyc prices never goes down, the 12,300 units price exactly the same way. Where is the justice Dept?

http://www.cnbc.com/id/43257844

Bugelrex, this will have greater effect on NY market than just about anywhere else.

Keep in mind that the oonforming loan limits are different (less) in other counties and states. So this should have an impact there as well.

According to the FHFA data, roughly 6 out of 10 of loans originated with loan amounts above the permanent limits but meeting the temporary limits came from California. Massachusetts, New York, and New Jersey collectively accounted for a further
20 percent. Twenty-six U.S. states had no purchase by the GSEs of the higher-balance loans.

New York will be impacted.

james.mcpartland@wellsfargo.com

I don't see how someone borrowing over 600k needs a subsidized mortgage. Let's go back to a free market system.

--
Not that we've had one for quite some time.....

Riversider: Helping the buyer is not the goal. At this point, the primary purpose of mortgage subsidies is to prop up prices.

West81, I only agree too much. But propping up prices is not the end goal. The end goal is to prop up the bank's balance sheet.

jimmcp
when people buy homes for 2,3,4 million whether the limit is 600,700 or 800k it doesn't matter.

RS: True, although a number of other industries have a stake in price supports, not just finance.

That's rich. The two greatest 'onkective' re shippers discussing the merits of the loan limits.

Hey how's the greatest buys of 2009 going?

Hey do you reconcile your hatred of govt support of banks and your rantings that your nyc coop has not lost a single yuan?

4 shillers having a nice disucssion, how nice.

Here is w67's truth. Nyc re is gonna be $500psf. All other discussions center around the re arranging of the deck furniture. FLMAOzzzzz

The loan limit can also affect a persons ability to qualify for a loan, due to the increase in rates adversely affecting their debt to income ratio. The amount of down payment isn't the only qualifying factor, as the debt to income ratio is going to need to be inline regardless of the person putting down 20% versus a down payment of 80%.

Realistically it doesn't make a huge difference on the high end of the market, but for those purchasing the 1,517 places listed between $800,000 and $1,000,000 in NYC these changes might make a difference.

It also makes a huge difference for anyone that may need to refinance their property that has a balance in that range, which I am sure is a large number. If you have an ARM that is going to expire in the next few years, why not extend it for another 5 years + while its available? This is even if you arent gaining that much on rate, the mitigation of the risk is well worth facing the possibility of a rate increase. The one year libor was 50bps higher a year ago, so likely anyone that got a high balance ARM is able to refinance to a lower rate and there is always the ability to decrease your closing costs with a slight increase in rate, so why not take advantage?

james.mcpartland@wellsfargo.com

James, how about selling and renting while the ahitstorm flows down to it's logical conclusion?

When the going gets tough, homeowners hunker down, put on the 'I won't die, get divorced or lose my income' force field on.

Just note, any loss of income like in a rescession severely weakens that force field. Go luck. Lock in that 30 yrs!

The Refi wave is over...

Not on ARM's when the they are lower than they have ever been? Take a look at this historic rate graph from Freddie's website that clearly illustrates that we are at the lowest rates in the last 6 years on a 5/1 ARM.

Ref: http://www.freddiemac.com/pmms/pmms5.htm

This is even more important in NYC because of the low costs incurred when refinancing a coop, due to the lack of title insurance and mortgage tax (CEMA). A half a percent on $700,000 will save you $3500 in the first year and the cost to refinance a coop is roughly $2500. Make sense? Even if you are saving a quarter of a percent, why wouldnt you do it?

james.mcpartland@wellsfargo.com

$6k holy fk Thatz a lot of money. There's a $0 down 599 gto lease you should sign.

Fking, consumption credit borker. When is there not a good time to prepay rent? FLMAOzzzzz.

Wellsfargo, the Harvard of banks. Or it it, the DeVry of banks? Or maybe you work in the last buggy whip maker that's too big to fail, until you do fail. Fantastic. Buy buy buy refi refi refi. Go to it.