Interest rates on home loans that conform to the Fannie Mae and Freddie Mac guidelines tend to be lower than non-conforming loans. That’s why it’s good news for homebuyers that the Federal Housing Finance Agency (FHFA) has increased the conforming loan limits to $484,350 in 2019, a $31,250 increase from the $453,100 2018 loan limit. In some higher-cost areas, the loan limits could be as high as $727,525. Click here to see the 2019 conforming loan limits for your county >
If you are a veteran or on active duty, the VA's 2019 loan limits are the same as the FHFA’s loan limits.
Additionally, the Federal Housing Administration (FHA) increased its floor loan limit to $314,827 on FHA home loans assigned on or after January 1, 2019. In high-cost areas, the new FHA loan limit ceiling is now $726,525. Click here to see the 2019 FHA loan limits for your county >
Here are two ways home buyers and home owners can benefit from these loan limit increases:
1 – Buy A New Home
Interest rates are still very attractive, and home prices are still affordable. The increased loan limit provides more buying power, whether it’s your first home or you want to move up into a new home.
2 – Refinance Your Home
It may be worth it to consider refinancing your home loan if:
- You currently have a home loan that is near the loan limit
- You’d like to make some home improvements
- You’d like to consolidate other debts into your home loan (such as home equity loans or credit cards)
- You’re paying mortgage insurance and your home has increased in value considerably from the time when you purchased the home
- You anticipate a change in your cash flow situation in the coming months (college funding, retirement, elder-care, etc.)
If you are interested in purchasing a home or refinancing your current home, contact a Certainty Home Loans Mortgage professional in your state
for more information or to run the numbers for your specific situation.
Source: CMPS Institute
Feb 21, 2019