Or, call me at: Bloomberg is reminding homeowners that the current conforming loan limit of $729,750 is to be reduced at the beginning of October:
Mortgages worth up to $729,750 can be insured by HUD’s Federal Housing Administration and government-controlled mortgage companies Fannie Mae and Freddie Mac — which together guarantee about 90 percent of all U.S. home loans. The cap, which was temporarily raised by Congress in 2008, is set to revert to $625,500 on Oct. 1.
If you’re in the market for refinance or purchase financing in an amount between $625,500 and $729,750 and are in a high cost area, get your financing done this summer. Once the conforming limit drops, your loan will once again be considered “jumbo” and subject to significantly higher rates, costs, and tougher qualifying criteria.
