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.