As the end of the year approaches, it’s time to look forward to the new Federal Housing Finance Agency (FHFA) loan limits that will shape the mortgage landscape in 2025. Every year, these limits are reviewed and often increased to align with housing market trends, which can have a significant impact on homebuyers and those looking to refinance. Here’s what you need to know and why these rising limits could benefit you.
Why Rising Loan Limits Matter to You
The FHFA sets the maximum size for conforming loans. These loan limits are adjusted to keep up with the changes in the housing market, and when they increase, it can open doors for many borrowers.
What This Means for Homebuyers:
More Borrowing Power: As loan limits rise, you can borrow more while staying within the conforming loan category. This is particularly beneficial if you’re purchasing in an area where home prices have increased, as it allows you to finance your home without needing to secure a jumbo loan, which often comes with stricter requirements and less-than-favorable rates.
Potentially Better Terms: Conforming loans typically offer more favorable terms compared to jumbo loans. With increased loan limits, you can access those better terms for a higher loan amount potentially saving thousands over the life of your loan.
Refinance Opportunities: The new limits may help you stay within the conforming loan category, offering access to competitive rates and the potential to adjust your monthly payments.
Higher conforming loan limits can potentially offer homebuyers more buying power, better loan terms, and easier refinancing opportunities.
How NMB Can Help
With the 2025 FHFA loan limits expected to be announced in December, exciting changes are on the horizon for homebuyers and those looking to refinance who are in the market today. At Nationwide Mortgage Bankers, our team is prepared to guide you through these updates and help you take advantage of the rising loan limits.
Ready to take the next step?
Whether you’re looking to purchase a new home or refinance your current mortgage, we’re here to assist. Contact one of our mortgage experts today to discuss how the rising loan limits can work in your favor. Let’s make your homeownership dreams a reality!
Reach out to NMB today to learn how the updated loan limits can open new possibilities for your home financing journey.
