Typically in late November, conforming loan limits are announced for the following year. Loan amounts under the conforming loan limit tend to have lower interest rates than loan amounts that are “high balance conforming” (available in certain counties, such as King, Pierce and Snohomish) or jumbo mortgages.
Recently there’s been a lot of chatter about loan limits for 2022 already being announced and as of of today, that’s simply not true. What is happening is that lenders are betting on higher loan limits because of how much homes have appreciated this year. These lenders are hoping to scoop a few more mortgages before the actual loan limits are announced knowing that the loan limits will most certainly be higher.
The current “true” conforming loan limit is $548,250 for 2021. Some lenders are currently going up to $625,000 for the conforming loan limit effective now.
I’m pretty lucky since at Mortgage Master Service Corporation, we work with several lenders and investors and some of them are offering the improved conforming pricing up to $625,000.
This is great news for those with loan amounts up to $625,000. If you would like to see current rates for your personal scenario for your home located anywhere in Washington state, please click here.
As soon as loan amounts for 2022 are actually announced by FHFA (Fannie Mae & Freddie Mac), I will be sure to post them here! Stay tuned!
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