Home Loan Limits Increasing...Could Mean Big Changes For You

Loan amount limits for home loans are increasing effective January 1, 2018. However, we have investors who are allowing the limit increases to be effective immediately...

The Changes:

• The maximum “conforming” loan limit is increasing from $424,100 to $453,100 (1-unit homes...multiple unit limits increasing as well).
• The maximum “high-balance” loan limit for high-cost areas is increasing from $636,150 to $679,650 (1-unit homes...multiple unit limits increasing as well).

 
The Impact:

• This may impact those purchasing a home and finding themselves limited by previous loan amount ceilings.
• It can also affect those who have loans currently sitting just above the previous limits, as their terms may be able to improve immediately by fitting into the new bracket!
• And it may be helpful to those looking to pull equity out of their home.

 
Examples:

• If your existing loan balance is around $680,000...you may now be able to more quickly go from a “Jumbo” loan to a “high-balance” loan to improve your terms.
• If your existing loan balance is around $454,000...you may now be able to more quickly go from a “high-balance” loan to a “conforming” loan to improve your terms.
• If your existing loan balance is now well below the new loan limits...you may have more room to pull equity out of your home.

 
With home values increasing dramatically over the past couple years, and loan limits now increasing, you may have the “perfect storm” that allows you to improve your financing.
 
Whether that means improving on existing terms, more opportunity to pull cash out, or getting out of an adjustable rate mortgage (with the FED now increasing rates)...we can help clarify for you.
 
Contact us if you have any questions on how this may impact you directly...we’re happy to help!!