Fantastic news has just come from the Federal Housing Finance Agency. The limit to conforming loans will increase from $510,400 to $548,250 in 2021. The rise is occurring because of the huge jump that home values had over the past four quarters. It seemed as though the number was going to plummet after the pandemic, but it took a turn for the better after having only a small dip during the spring. Home prices rose an entire 7.42 percent, according to the reports. After reviewing the reports, the FHFA felt that it would be best to boost limits for the new year.
How the Changes Affect Homeowners and Applicants
The newly raised loan limits will affect existing homeowners and mortgage applicants positively, and they can start to reap the benefits right now. The higher limits will allow existing homeowners to access larger refinancing deals. Conforming loans, which are acquired by Fannie Mae and Freddie Mac, are generally easier for a debtor to get than some other types of loans. The new limits will cause additional applications to receive approvals. Homeowners, home buyers and mortgage companies will benefit from the changes. Furthermore, debtors who get approved for conforming loans are like to receive lower mortgage rates than they would from different loan types. It looks like the new limits are going to cause a win-win situation to occur for everyone involved.
Contact Us for Help Getting a Mortgage
MortgageDepot is the place to go for mortgage and refinancing deals. We have been in the mortgage business for years to make life better for new and existing homeowners. We can connect you with the perfect mortgage or refinance arrangement. We’ll listen to your vision, and then we’ll find something that works well with your current financial situation and expressed desires. You can contact us to schedule a consultation by calling us on the phone or completing a brief online form and requesting assistance. Our seasoned mortgage specialist will then walk you through every step to get the funding you need for your next big move or refinance deal.
Contact one of our loan consultants to learn more about this program.