Higher loan limits coming in 2020

Higher loan limits coming in 2020

Higher loan limits coming in 2020
The Federal Housing Finance Agency announced last week that mortgage giants Fannie Mae and Freddie Mac will increase their lending limits next year as a result of nationwide home price gains. Currently, the maximum conforming loan limit for single-family homes is $510,400. This will increase to $548,250 in 2021.

Loan limits are based on median home prices in a given metropolitan area. Higher limits assist buyers by providing access to better financing terms on a new mortgage or refinance. Loans that exceed these limits are generally referred to as jumbo or non-conforming loans.

Housing markets like San Diego are typically given higher loan limits to allow for the higher median home price. In 2020, the San Diego limit is $701,500. New limits for 2021 specific to San Diego County will be $753,250.

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.