In the midst of all the bad, I mean really bad news, this past week, their was some good news for homeowners in the high priced areas of the country. OFHEO, the government agency responsible for oversight of Fannie and Freddie Mac have raised the limit of loans that these agencies can securitize.

To find out if your county is affected please visit OFHEO's website: http://www.ofheo.gov/newsroom.aspx?ID=418&q1=0&q2=0 which has a PDF of those counties that are affected: http://www.ofheo.gov/media/hpi/AREA_LIST.pdf

Good news, right???

Maybe.

There are several important limitations which reduce the availability/usefulness of these loans.

About a week after I contacted Quicken by submitting their form from the icon located to the right on Best Pick Home Loans, I received a phone call from their representative. The representative came on very strong. He spent a good five minutes telling me that he is glad to be working for a Company that is reputable. He mentioned the affiliation with Quicken and Quickbooks as a source of pride within his Company. He told me that he doesn't make commissions on the loans. He also told me that they are the largest online lender. He also emphasized more than few times how Quicken Loans is a DIRECT LENDER. They are not a broker and therefore they can eliminate middlemen and avoid multiple fees.

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Okay so despite all my research and knowledge about loans that I had gained, I still was wondering if I made the right choice to lock in a 15 year fixed loan at 6.25% today August 30, 2007 with $1733 in closing costs (all in including $33 for buy down). The loan amount was for $100,000.

After agreeing to lock down the rate, I received in the mail a Express Mail envelope from Citibank which offered to beat any offer or pay us $100. It was perfect timing and they somehow must have known that we were shopping for loans - I give them kudos for anticipating such a move and sending out the letter when they did.

As you know from my previous blog entries, I needed to refinance a $80,000 mortgage taking out about $20,000 to paydown a balance on a 2nd - a $100,000 mortgage. After meeting with several lenders last week, I met with Bank of America on Monday for an introductory meeting. The meeting convinced me to take the next step and so yesterday (Wed, August 29,2007) I turned in the necessary paperwork.

After deciding on the loan type this weekend - a 15 year fixed rate - I called on Bank of America today, August 30, 2007. I met the loan representative who was very helpful. I told her my scenario and she was able to quickly tell me the following information. One of the nice things about doing this shopping was that I now knew exactly which loan product I wanted which enables me to quickly get through the clutter. I also could do very good apples to apples comparisons. I knew the product and I knew that I didn't want to pay any points, suffer any pre-payment penalties and minimize my closing costs.