2022 Conforming Loan Limits?

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!

How Does Dave Ramsey’s Advice on Mortgages Pencil Out?

Last month I wrote about advice I’ve been seeing popping up in my Facebook feed from Dave Ramsey on mortgages. There are several points that I just don’t find realistic for the average person who wants to buy a home, such as only using a 15 year amortized mortgage with 20% down payment and limiting your mortgage payment to 25% of your take home pay. I promised that I would share a follow up post where I review different scenarios comparing his advise to real life scenarios. [Read more…]

Should You Follow Dave Ramsey’s Advice on Mortgages?

Dave Ramsey is someone a lot of people follow for financial advise. Lately he’s been showing up A LOT in my Facebook stream pushing his thoughts on mortgages, home ownership and credit. Some of his ideas, I don’t totally disagree with. In fact, I shared a post that came from his group encouraging people to continue to pay rent and make their mortgage payments during the pandemic if at all possible (ie nothing is for free). However, I don’t support what he instructs his followers who are considering buying a home and I also have an issue with anyone who pushes their “team of vetted real estate agents”…I would be really surprised if there is not some sort of financial relationship associated with this referral arrangement.

Let’s take a look at what he encourages his followers to do with regards to buying a home or getting a mortgage. [Read more…]

Mortgage Rates Lumbering Low

Freddie Mac’s PMMS shows mortgage rates remaining at low levels.

From Freddie Mac’s Chief Economist, Sam Khater:
“While the economy continues to grow, it has lost momentum over the last two months due to the current wave of new COVID cases that has led to weaker employment, lower spending and declining consumer confidence. Consequently, mortgage rates dropped early this summer and have stayed steady despite increases in inflation caused by supply and demand imbalances…”

The rates posted above are an average from last week and, as you know if you’re a long time reader of The Mortgage Porter, mortgage rates change constantly as they are based on bonds. The PMMS report shows you where mortgage rates have been and is a good indicator for past trends. It does not necessarily show you where mortgage rates are now.

If you have been considering refinancing or buying a new home located anywhere in Washington state, I am happy to help you! Click here for a no-hassle mortgage rate quote for your personal scenario.

What to do if your bank closes your line of credit

CNBC reports that Wells Fargo is closing personal lines of credit and no longer offering the product to consumers. In a letter sent to their clients, they state that the closure may impact their credit scores. In my opinion, this really stinks! [Read more…]

Mortgage rates move lower

Mortgage rates have moved lower as reflected in Freddie Mac’s Prime Market Survey released this morning.
From Freddie Mac: “Mortgage rates decreased this week following the dip in U.S. Treasury yields. While mortgage rates tend to follow Treasury yields closely, other factors can be impactful such as the labor markets, which are continuing to improve per last week’s jobs report,” said Sam Khater, Freddie Mac’s Chief Economist. “We expect economic growth to gradually drive interest rates higher, but homebuyers and refinance borrowers still have an opportunity to take advantage of 30-year rates that are expected to continue to hover around three percent.” [Read more…]

Income Limits increased for Home Advantage with Down Payment Assistance

Hot off the press! Washington State Housing Finance Commission has just announced that income limits for the Home Advantage program are being increased to $160,000 effective July 2, 2021. Click here for current mortgage rates for your scenario. [Read more…]

Fed Leaves Rates the Same BUT…

The Fed’s announcement today to leave the funds rate unchanged was not a surprise to the markets. What did send the bond market in a tizzy this afternoon was that the Fed ever-so-slightly moved the goal posts out a bit for inflation. [Read more…]