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 that the Federal Housing Finance Agency (FHFA) recently announced that the conforming loan limits have increased to $453,100 in 2018.  This is a $29,000 increase from the $424,100 loan limits of 2017.  In some higher-cost areas, the loan limits could be as high as $679,650.  Click here to view a map of all the loan limits across the US.   Here are two ways to benefit from this increase:

    1 – Consider Refinancing
    It may be worth it to consider a home loan refinance 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.)

    2 – Consider Buying a New Home
    Interest rates are still very attractive, and home prices are still affordable.  It may make sense for you to consider a new home purchase in 2018.

    Contact me for more information or to run the numbers for your specific scenario.


    Trackback from your site.

    Leave a Reply