This coming year could be one of the best years for property sales in America thanks to these new loan limit increases. As reported by Lew Sichelman on realtytimes.com, "Effective Jan. 1, the so-called "conforming loan limit" will increase to $333,700. Also on that date, the ceiling on government-insured mortgages will rise to about $290,300 in three-dozen expensive areas and $160,200 in most other places. " That means that you will be able to barrow more money in 2004 for a new home then you would have been able to barrow in 2003. That could open a lot of doors for a lot of people.
These new higher loan limits could also save people money in the long run. As reported by Lew Sichelman on realtytimes.com, "According to Fannie Mae's estimate, nearly 100,000 buyers could save up to $21,900 over the life of a 30-year mortgage because of the higher loan limit. But Freddie Mac says some 150,000 buyers will be able to obtain lower cost funding, saving almost $40,000 over a 30-year loan term. " These new loan limits look like a win-win for all concerned. If you are thinking about buying a new home, keep these new loan limits in mind, and pick out that lavish home you always wanted. |
