2008 Economic Stimulus Package
Much has been made of the $150 BILLION 2008 Economic Stimulus Package that is supposed to jump start our flagging economy.
Me personally?
I’m having trouble understanding how adding another $150 billion to our national debt and sending me a check for a few hundred dollars is going to “stimulate” our economy, but that’s a topic for another post.
Anyway . . .
The new law includes provisions to expand loan limits for “conforming” loans beyond the current $417,000 maximum.
But, that will not apply to the Boise area because the new loan limits are tied to 125% of the current median price in specific markets.
With the January Ada County median price at about $220,000, local borrowers will not benefit from these new, higher loan limits.
However, potential buyers who now live in more expensive markets (spelled C-a-l-i-f-o-r-n-i-a) may now be able to sell their homes there so they can move here.
But wait, there’s more . . .
These new, larger loans must await (say it isn’t so!) formulation of new rules and regulations from Fannie Mae and Freddie Mac, because these new loans cannot be included in the same mortgage pools as the previous conforming loan pools.
And our guvmint will need several months to determine the median price for all of the various areas of the country.
Maybe the nearest helping hand is the one at the end of your arm?
February 20th, 2008 Posted in Uncategorized
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