Jumbo Loan Amount Increases

According to a November 30th Sun-Sentinel article, Fannie Mae and Freddie Mac are raising the limit on the size of single-family home mortgages they will purchase by 16% to $417,000, increasing the pool of buyers who will qualify for lower cost financing. Starting January first, the loan limit will be raised from $359,650 to the $417,000 amount. If a loan amount is above this figure, it is referred to as a jumbo loan. The interest rate on a jumbo loan is typically one-quarter percent higher than a conforming loan (amount that is less than a jumbo loan). Because of the increase in the jumbo loan amount, some borrowers may be able to save thousands of dollars over the life of a loan.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com