Finally relief is near for those with Jumbo mortgages.  The FHA administration have now updated their mortgage limits per county  see attached link for your county https://entp.hud.gov/idapp/html/hicostlook.cfm, loan limits raised anywhere from a few thousand dollars to several hundred thousand.  Depending on your particular situation you find yourself with your mortgage amount you may find that your rate might be higher than what you see published.  I will explain.

Prior to the recent changes in the loan limits  anyone that had a mortgage balance of $417,000 or lower was considered a conforming loan amount; anything above $417,000 was a jumbo mortgage.  With the increase loan limits most banks have the ability in some counties to lend up to $729,750.  However all lenders are being tight as to actually lending to the higher loan limits.  Many banks have yet to offer the higher limit and others are increasing the interest rates on those loans higher than 417,000.  So in essence while it is a good thing to see the higher loan limits it will and you will be able to refinance be aware that the interest rate for FHA will more than likely be anywhere from a .25% to .375% higher than those with loan amounts less than $417,000. 

The good news is that these new rates are much less than a typical jumbo interest rate and should provide necessary relief for homeowners with jumbo ARM mortgages. 

Should you have a question on limits and what more information you can contact me at mpaul@directmortgageloans.com or visit www.directmortgageloans.com and visit the FHA page.

 

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