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HouseRebate.com and Aimloan.com Support the Proposed 2008 $150 Billion Tax Stimulus Package

HouseRebate.com and AimLoan.com support the proposed 2008 $150 Billion Tax Stimulas Plan increasing loan limits to stimulate the San Diego real estate market.

San Diego, CA ( PRWEB) February 1, 2008 -- Brian Yui, CEO of HouseRebate.com, a national discount real estate company, based in San Diego declares his company's support for the proposed $150 billion economic stimulus package. As part of the package, Congress is proposing an increase in the conforming loan limits to $625,000, and in some areas to $729,750, up from the current $417,000. Yui believes this would benefit the San Diego real estate and California market, as the median home price in California is $597,640 according to the California Association of Realtors.

Since interest rates on conforming loans are lower than those on non-conforming or jumbo loans, Yui feels this plan would increase the pool of buyers for the San Diego real estate market. "The new loan limits will assist the San Diego home market by providing additional buyers for our large inventory," said Brian Yui, CEO of HouseRebate.com. "We feel these limits should be permanent in markets, such as San Diego , where home prices are significantly higher than the national average." Mortgage rates on a 30 year fixed rate loan are currently about 1% higher for jumbo loan amounts, compared to conforming loan amounts, according to the rates posted on San Diego lender AimLoan.com.

Conforming loans are approved by most lenders using an automated underwriting systems developed by Fannie Mae and Freddie Mac. "Not only are conforming loan rates substantially lower than jumbo rates, but it is easier for borrowers to get approved for a conforming loan," said Vince Kasperick, CEO of AimLoan.com. The same jumbo loans written under the conforming loans would be approved through the conforming loan automated underwriting. Kasperick believes that many homeowners currently stuck in jumbo adjustable rate loans would be able to refinance into fixed rate loans, "Increasing the conforming loan limits would stimulate a mini refinance boom in the San Diego market," according to Kasperick. For an example, a $500,000 30-year fixed rate mortgage priced at the current jumbo rates of 6.5% has a monthly payment of $3,160. But if that same $500,000 loan could be priced at the current conforming rate of 5.5%, the payment would only be $2,838, resulting in a monthly savings of over $300 per month.    

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