Buyers and Sellers Take Note: according to an article posted on today's Wall Street Journal website, conforming Mortgage Caps are set to decrease in October. For those of us in Los Angeles, that means caps will decrease from a current max $729,750 down to $629,500.
For Buyers in this price range, this essentially means that any loans above the new cap will be considered "jumbo" and subject to higher rates and other conditions. Home owners planning to sell in the next few months might consider the advantages of selling prior to implementation of the rate cap.
Although the decrease doesn't take effect until October, Bank of America has already adopted the new loan cap, and there are rumors that other lenders may follow suit before the end of summer.
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