TAKE ACTION: The Fannie Freddie category "conforming jumbo" is about to go away. The new conforming limit is going to be about $480,000. That means that the loan payments on loans over $480K will go up because the interest rate will be about a full point higher than "conforming".
On an $700,000 loan the difference is 449 dollars a month. Now, if you are going to be OK making that extra $449 payment, let me point out your "opportunity cost".
The $449 payment is equal to an extra $79,079 in loan amount at the lower rate. Not only does delaying cost you a higher interest rate it buys you less house!!! There is still time but don't plan on a short sale!! You will save more in the long run buying a home you love with a great long term interest rate today.
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