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On November 30, 2021 the Federal Housing Finance Agency (FHFA) announced an increase in the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2022.

The maximum loan limit for one-unit properties will be $647,200, an increase from $548,250 in 2021. Release.

The decision was based on the recovery of housing prices under the Housing and Economic Recovery Act of 2008 (HERA). They require that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.  

FHFA third quarter 2021 House Price Index (HPI) reported that house prices increased 18.05%, on average, between the third quarters of 2020 and 2021. The baseline maximum conforming loan limit in 2022 will increase by the same percentage.

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit. 

A list of the 2022 maximum conforming loan limits for all counties and county-equivalent areas in the country can be found here.

Contact your Greenway Mortgage loan officer today for more details about how the increase can impact you.

2022 Conforming Loan Limits Effective January 2022


 

Rates could be moving up!

On November 22, President Joe Biden announced the re-nomination of Federal Reserve Board Chairman Jerome Powell. Both said they are focused on fighting inflation.

What does a good inflation fight mean for markets and rates?

Typically, the Fed’s best weapon against inflation is to cool the economy by increasing policy rates. These rates don’t directly influence mortgage rates, but the end result will likely be the same.

Bond and mortgage markets began pushing mortgage rates higher immediately after the announcement.

Questions remain about how fast and how far the Fed will go with policy rate increases and the further tapering of mortgage bond purchases, which have helped keep rates at record lows since the spring of 2020.

But one thing is clear: for anyone looking to purchase or refinance a home, it may pay to act before rates rise further. Low rates equal lower payments or the ability to buy a more expensive home for the same payment. The opposite is true as rates rise.

Reach out with any questions or to get started today.

 


 

Conventional Loan Limits are increasing effective immediately! As home prices continue to rise, this update gives home buyers more wiggle room to qualify.

Loan Limits Just Got Higher

We are happy to announce that we now offer conforming loans up to $625,000, about $75,000 beyond our previous limit!

Previously, conforming loans were available up to $548,250. With recent changes, that limit has increased to $625,000.

What can this mean for you?

  1. You can potentially borrow more through a conventional, typically lower rate loan.

  2. You may be able to access lower down payment options for larger loan amounts without paying mortgage insurance for the life of the loan.

  3. You may be able to combine (or avoid) smaller 1st and 2nd mortgages.

If you have questions about this change, please reach out to the experts at Greenway Mortgage. And if you have friends who may benefit from the news, please pass it along. We are happy to help.


 

Here’s how the rate news could affect your mortgage

If you follow the financial news, you know that the Fed recently had one of their scheduled meetings to discuss and comment on policy.

First, who is the Fed?

The Federal Reserve Board (the Fed) is the central banking system of the U.S. The Fed supports the U.S. economy with monetary policy.

The Fed indicated it could start raising rates in 2022. These are charges for overnight loans from bank to bank and will often indirectly impact mortgage rates. 

The Fed also expects to begin tapering its asset purchases “soon,” as early as its next meeting in November. The Fed began regular large-scale purchases of U.S. Treasuries and mortgage-backed securities in March 2020 to help lower long-term interest rates and stimulate the economy.

How will this affect your mortgage?

While neither of these actions directly impacts mortgage rates, either can have the result of pushing rates higher, even in advance of actual Fed rate policy changes.

What should you do?

Consider that today’s low rates aren’t likely here to stay long term. If you are thinking of purchasing or refinancing, it may pay to act soon. As well, if you’ve been thinking about purchasing a second or investment home, a recent change has made rates and availability of agency backed financing better. 

Thank you for allowing us to provide you updates on industry news. Please reach out to the experts at Greenway Mortgage can answer questions or help you or those you love with financing (or refinancing) a home.

 


 

If student loans are keeping you or someone you know from homeownership, help may have arrived.

The Federal Housing Administration (FHA) has changed the way student loan payments are counted when determining eligibility for federally insured mortgages.

How Does FHA Look At Student Loans?

The change is particularly helpful for student loan borrowers who are on an income-based repayment plan; whose loans are in an approved deferment or forbearance; or whose loans are not fully amortizing.

Previously, lenders were required to count 1% of the outstanding student loan balance toward monthly debt payments in those situations. That amount has been cut in half or even more in some cases.

If you or someone you know was previously unable to finance a home because your student debt load was deemed too high, let’s try again. Let's see if we can get you into the home you’ve always wanted.

Contact us today to get the process started or to learn more about these changes and how they could benefit you. 

 


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