By Bob Cahill, Leader Bank
Big changes for 2020! The Federal Housing Finance Agency announced the conforming limit for one to four unit properties is increasing. For a complete list by states/counties please click here.
What Is the Conforming Loan Limit?
The conforming loan limit is the dollar cap on the size of a mortgage that the Federal National Mortgage Association (colloquially known as Fannie Mae) and the Federal Home Loan Mortgage Corporation (aka Freddie Mac) will purchase or guarantee. Mortgages that meet the criteria for backing by the two quasi-government agencies are known as “conforming loans.”
Higher limits to conforming mortgages might allow you to refinance out of a Jumbo into a Conforming and qualify for a lower fixed interest rate on your mortgage debt. Every homeowner with a mortgage should want to minimize the interest they pay over time.