New, New Conforming Loan Limits

If you’re confused about the newly revised Fannie/Freddie Conforming Loan Limits… that’s because they’re, well… confusing. I’m talking, of course, about the newly revised-revised ones… not just the old revised ones.

The old $417,000 San Diego conforming limit was recently bumped to $546,250. Up until now, lenders have been offering competitive rates, say 4.875% (with 1 point) on the $417k limit, and they were supposedly going to offer about .625% more than that, say 5.5%-ish for “agency jumbo” loans between $417k and $546k. However, in practice, lenders were still charging substantially more than this.

Now, $546k is the new (supposed) conforming limit… and the “agency jumbo” is bumped up to $697,500. So in theory, the $546k limit will get the killer 4.875%-ish rate, while the $546k-$697,500 loans will get the good, but not great 5.5%-ish rate.

Clear as mud, but at least we’re moving in the right direction.

Meantime an actual horse’s mouth told me today that lenders are actually beginning to offer loans above $417k at the 5.5%-ish rate… but I don’t know yet how high a loan limit they will allow… mostly because I think, the lenders don’t know either.

As a side note, this stuff pretty much pertains to purchases only, of course, since few actual homeowner these days seem to have equity sufficient to refinance, and the government seems bent on subsidizing everyone with a mortgage anyway, at least until the money runs out… but don’t get me started.

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