2 min read

2 WAYS TO BENEFIT FROM THE 2022 LOAN LIMIT INCREASE

Dec 7, 2021 6:47:23 AM


sweet home estar mortgage

Home loans that conform to the Fannie Mae and Freddie Mac guidelines tend to have better terms than non-conforming loans. That’s why it’s good news that the Federal Housing Finance Agency (FHFA) recently announced that the conforming loan limits have increased to $647,200 for 2022. This is a $98,950 increase from the $548,250 loan limits of 2021. In some higher-cost areas, the loan limits could be as high as $970,800, which is a whopping $148,425 increase from the $822,375 high-cost loan limits of 2021. Click here to view a map of all the loan limits across the US.

As for loans insured by the Federal Housing Administration (FHA), the loan limit for low-cost areas went up to $420,680, and the loan limit for high-cost areas went up to $970,800. There are also some special exception areas such as Alaska and Hawaii with higher loan limits. Here are two ways to benefit from this increase:


 

BUY A HOME

It may make sense for you to consider a new home purchase using the higher loan amounts. This may be the perfect time for you to lock in a long-term interest rate because many economists believe that interest rates could go up over the coming year.

 

REFINANCE

It may be worth it to consider a home loan refinance if:

  • You currently have a home loan that is near the loan limit
  • You’d like to make some home improvements
  • You’d like to consolidate other debts into your home loan (such as home equity loans or credit cards)
  • You’re paying mortgage insurance and your home has increased in value from the time when you purchased the home
  • You anticipate a change in your cash flow situation in the coming months (college funding, retirement, elder-care, etc.)

 




Contact me for more info:

Chris Freck MBA CMPS

Chris Freck MBA CMPS
Broker
NMLS: 241125
EstaR Mortgage
mylender@estarm.com
(510) 463-1003
2413 Webb Ave, STE E,
Alameda, California 94501
Corporate NMLS: 1547521



 

 

 

Chris

Written by Chris

Featured