FOR IMMEDIATE RELEASE

Doug Haldeman

Increased Federal Loan Limits Lower Price Tag on Hundreds of Thousands of Loans

Mortgage Planners can Help Potential Homeowners Reduce Monthly Payments by Choosing the Correct Federally-backed Loan Product While the Temporary Increase is in Effect

St. Louis, MO; March 11, 2008— One immediate benefit of The Economic Stimulus Act of 2008 is the increase in loan limits for FHA Loans. By raising the Federal Housing Administration’s loan limits on what qualifies for lower-cost FHA, Fannie Mae and Freddie Mac loans, the bill could help a quarter of a million families purchase or refinance their homes at a lower cost. Combined with record low interest rates, the change could improve the financial picture for many now facing foreclosures. The options and loan ceilings vary, however, from county to county and only a Certified Mortgage Planner can weigh all the options to determine if a new loan makes sense for an individual homeowner.

“This is a wonderful opportunity for those now paying a premium in subprime loans, and lower their payments by switching to a federally-guaranteed loan at today’s low rates,” states Doug Haldeman, a Mortgage Planner and President of Cherry Creek Mortgage Company, a mortgage banking company based in Chesterfield, MO. “The right loan product can go a long way toward maximizing equity position while minimizing risk.”

HUD Secretary Alphonso Jackson was optimistic about the number of people who would benefit from the temporary increase. "The stimulus is providing immediate relief to homeowners," Jackson said. "It raises the Federal Housing Administration's loan limits, enabling more families to qualify for a safe, affordable FHA mortgage. This has created a vacuum, filled by exotic subprime loans. Families with home loans up to $281,250 will now qualify for an FHA loan, the old limit 213,650 in the St. Louis Area."

Haldeman predicted the new rules would allow thousands of local families to access equity in their homes and make homeownership a reality for thousands more. “This is good news for people who were otherwise paying a higher interest rates in subprime loans.” Haldeman stated.

Regardless of the market, however, there is no universal optimal choice of mortgage product and potential borrowers are advised to contact a knowledgeable and reputable mortgage professional who can evaluate their current financial situation, consider their goals and capabilities, and take these factors into account when advising about potential mortgage options. “I take numerous factors into account when evaluating a borrower’s fit for a specific type of loan,” says Haldeman. “There are far more factors than monthly payment and interest rates. I always consider the borrower’s spending habits, capacity to save, risk tolerance and future goals. A good loan choice is the one that works best for the specific borrower. Suitability is absolutely critical for the deal to make sense.”