Fremont Bank Notifies California Homeowners and Homebuyers to Capitalize
on Low Interest Rates Before New Conforming-Jumbo Loan Limits Change
Many California counties will soon be affected by significant change in maximum lending limits
FREMONT, California - June 2, 2011 - Fremont Bank, a leading
full-service mortgage lender in California, is alerting well-qualified
Bay Area and Southern California homeowners and prospective buyers
to take advantage of low interest rates before October 1, 2011,
when a significant change to the current maximum conforming-jumbo
loan limit will take effect.
Under the Housing and Economic Recovery Act of 2008, the conforming-jumbo
loan limit threshold will be set at 115% of the 2010 median home
price for select California counties—not to exceed 150% of
$417,000 or $625,500. Given the recent rate spreads between conforming
loans and jumbo loans (currently above $729,750), affected homebuyers
could see rates .50% to .75% higher after October 1. For example,
under the new calculation, Napa County residents could see the maximum
conforming-jumbo loan limit drop almost $140,000, from the current
maximum of $729,750 to the new limit of $592,250.
In California counties where the cost of housing is high, Fremont
Bank advocates homebuyers and current owners to act now. "With
a precipitous drop in interest rates over the past few months and
the imminent shift of the conforming-jumbo loan limit, California
homebuyers are in a great position to capitalize on these extraordinary
conditions, but the window will close soon" said Brad Seibel,
Fremont Bank's director of residential lending.
Application volume for residential loans at Fremont Bank has increased.
"We are seeing a large number of our clients take advantage
of the low interest rates to pay off their loan quicker or choosing
to refinance to a shorter term product—i.e. moving from a
30 year term, to 15 or 10 year term," adds Seibel.
About Fremont Bank
Fremont Bank (www.fremontbank.com)
is the leading full-service community bank in Northern California.
Founded in 1964, Fremont Bank is one of the oldest independent family
owned and managed banks in the region and focuses on personalized
service for individuals and businesses. It serves communities through
19 branches and seven additional ATMs throughout the Greater Bay
Area. Exceptional client service is the cornerstone of Fremont Bank’s
business. Accommodation of customer needs in a friendly, personal
atmosphere characterizes the Bank’s culture.