More Home for Less Money?
The Federal Housing Finance Agency (FHFA) recently announced an increase, taking effect in 2023, in the amount of money that can be borrowed through a standard home loan.
The standard loan limit, also known as the conforming loan limit, rose by just over 12% to a maximum of $726,200 in most areas. This is the 7th year in a row that the FHFA has raised the limit, after a decade of no increases. The limit has risen more than $310K over seven years.
What does this mean?
- Buyers may have the opportunity to borrow more money through a conventional loan, which typically comes with a lower interest rate.
- Current homeowners may be able to refinance their “jumbo” loan to a lower interest rate conforming loan and possibly drop mortgage insurance too.
- Combining (or avoiding) smaller first and second mortgages may now be an option.
If you’re curious about the limits in your county or other areas, follow this link to check. We’ll update it as limits change, so bookmark it for future reference. If you have any questions about what this change could mean for you, please reach out. Call us today at 952-942-0110 or visit www.CambriaMortgage.com/Connect!