It Just Got a Bit Easier to Buy a Higher-Priced Home
The limits on conforming home loans have risen for the first time in 10 years.
Home prices rebounded nationally by late fall to levels last seen in 2007, when the housing bust began. In response, the Federal Housing Finance Agency has increased the maximum limit for conforming loans backed by Fannie Mae and Freddie Mac for the first time in 10 years—from $417,000 to $424,100 in most of the U.S. In areas with the priciest homes, such as New York City and San Francisco, the limit for super-conforming loans rises from $625,500 to $636,150. (Special limits apply in Alaska, Hawaii, Guam and the U.S. Virgin Islands.)
The difference between average interest rates for conforming loans and jumbo loans nationwide is negligible (recently 4.41% versus 4.36%, according to the Mortgage Bankers Association). But lenders usually require a minimum FICO credit score of 740 and 5% down for a conforming loan, versus 760 and a down payment of 20% to get a private jumbo, says Keith Gumbinger, of HSH.com, which follows mortgage and home-equity trends.
Even if you qualify for a conforming loan, if you put down less than 20%, you’ll still have to pay private mortgage insurance (PMI). And beginning in 2017, you can no longer deduct the cost of PMI on your tax return if you itemize.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
-
Is a Phased Retirement Right for You?
Want to keep working, just not as hard? A phased retirement may just be the answer.
By Kimberly Lankford Published
-
Four Tips to Make Your Sales Presentation a Winner
Being prepared and not being boring can go a long way toward persuading a potential customer to buy into what you’re offering.
By H. Dennis Beaver, Esq. Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
Best Foreclosure Sites for Finding Properties
Making Your Money Last Wondering how to find foreclosed homes for sale for your next residence or to flip for a profit? These websites will guide you to foreclosures and real estate-owned properties to buy.
By Bob Niedt Last updated
-
Luxury Home Prices Rise as the Rich Dodge High Mortgage Rates
Luxury home prices rose 9% to the highest third-quarter level on record, Redfin reports, growing nearly three times faster than non-luxury prices.
By Kathryn Pomroy Published
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
By Vaishali Varu Last updated
-
How Much Life Insurance Do You Need?
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
By Kimberly Lankford Published
-
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated