Until recently, the conventional loan limit was $417,000. Anything above that was considered a “jumbo” loan, which had stricter credit requirements and higher interest rates. But things have changed.
Last week, Fannie Mae and Freddie Mac, the two government-sponsored entities that purchase the bulk of mortgage loans from lenders, raised that limit to $484,350 for much of the country. In some regions with higher property values however, including metro Denver, the limit is now $561,200. This is good news for borrowers, as conventional loans allow a smaller down payment percentage versus that of Jumbo loans – as little as 3%.
Contact your mortgage broker to see if it makes sense for you to buy (or sell, for that matter) before mortgage rates rise further. If you don’t have a mortgage broker call us. We can put you in touch with several professionals we know and trust