Mortgage Shopping

Here’s some great news for New Mexico homebuyers! Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation), the private corporations chartered by Congress to provide stability and affordability to the mortgage market, have raised the maximum loan limit from $548,000 to $625,000.
This increase means that a borrower can now take a mortgage up to $625,000 and stay within the conforming loan limit. Prior to this increase, a loan over $548,000 was considered a Jumbo loan and those were at a higher interest rate than a conforming mortgage.
Home buyers can take a much higher mortgage loan amount and still get a great interest rate. For current homeowners, this also allows them to refinance out of a Jumbo into a conforming loan amount if they were above the old loan limit. That can save them significantly over the life of the loan if they refinance.
At this time, this only applies to conventional loans. VA and FHA have not announced that they will raise their limits, however in the past, they both have been close behind when Fannie Mae and Freddie Mac announced an increase in the conforming loan limit, so they may also raise their loan limits soon.
This again is great news as Fannie Mae and Freddie Mac have accommodated the rapid increases in the price of homes and are trying to keep up with consumer demands. That new conventional mortgage loan limit is now $625,000. If we can help with a new mortgage loan or a refinance, call our team at Indigo Mortgage! We’ve been serving Albuquerque and New Mexico homebuyers since 2003.

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