|
I heard that the mortgage limits are going up. What exactly does this mean?
Ruth F. in Herndon, VA asks;
Stephen,
I heard that the mortgage limits are going up. What exactly does this mean? Also, I am planning on buying a larger home in the spring. Will this new higher limit benefit me?
Ruth,
you are correct. Freddie Mac and Fannie Mae, the nation's major buyers of home mortgages, have announced they will increase their single-family mortgage loan limit from $359,650 to $417,000. If you plan to borrow $400,000 to purchase your new house, you can take advantage of the lowest rates and best programs rather than a non-conforming or Jumbo program at a higher rate.
This increase in conforming loan limits is based on changes in the average home prices, as published by the Federal Housing Finance Board. The increase in the single-family mortgage loan limit makes it possible for an estimated 500,000 additional families to obtain lower cost mortgage financing.
Freddie Mac estimates that total mortgage interest savings for a borrower with a typical 30-year fixed-rate mortgage at the new conforming loan limit is as much as $24,700 over the life of the loan.
Stephen
If you have a question that you would like me to answer please email me at Stephen@katzmortgageteam.com.
Email Page | Print Page
|
|
|
