FNMA Loan Limits 2023 And News- about rates and mortgage applications…
Believe it or not, some things are improving with mortgage lending. The maximum loan limits have increased. However, interest rates have gone up for 30 yr loans- @ about 5.640%, a 15 yr loan rate trend is at 5.870.
Re: Mortgage News Daily which is an interest rate trend; depending of course upon the lender.
Maximum Loan Amounts For Conforming Conventional Loans *this is the good news for FNMA Loan Limits And News
This means that you will be able to get a conforming loan amount of up to $726,200 for one unit (single-family) dwelling. It also amounts to a sales price of approximately $726,200 (+- slightly) if you are obtaining a 95% loan to value with a 5.000% downpayment for the FNMA.
Maximum Loan Amount for 2020
| Units | The Contiguous States, the District of Columbia, and Puerto Rico | Alaska, Guam, Hawaii, and the U.S. Virgin Islands |
|---|---|---|
| 1 | $726,200 | $1,089,300 |
| 2 | $929,850 | $1,394,775 |
| 3 | $1,123,900 | $1,685,850 |
| 4 | $1,396,800 | $2,095,200 |
Maximum Loan Amount for High-Cost Areas for 2020
***A number of states (including Alaska and Hawaii), Guam, Puerto Rico, and the U.S. Virgin Islands do not have any high-cost areas in 2023
| Units | The Contiguous States, District of Columbia+ | Alaska, Guam, Hawaii, and the U.S. Virgin Islands |
|---|---|---|
| 1 | $1,089,300 | Not Applicable |
| 2 | $1,394,775 | Not Applicable |
| 3 | $1,685,850 | Not Applicable |
| 4 | $2,095,200 | Not Applicable |
Mortgage Interest Rates Lower -But…
With interest rates higher than they have been in a decade, many individuals are taking a break while thinking about buying a new home.
From The Desk of a Prior Underwrite: My evaluation of mortgage matters is rather a simple explanation-be careful…know what you are getting in to…
Since the 2008 mortgage meltdown, (yes, I know this has been over a decade also), however, so much negative has occurred for many homeowners in those years. Therefore I am putting a reminder in here to “be careful of what you want” versus, “what you can afford.”
It started with the no-down-payment loans, weakened guidelines, and sales prices out of the roof.
Interest rates were higher for those borrowers who needed significant help in purchasing the home of choice; come had an interest of 8.000 – 10.000%. Are we headed in that direction now? Well, who knows…keep a watch on rates.
Lenders helped the applicant get a larger home, pay a less down payment, and often with second mortgages. Bottom line this was not in the best interest of all borrowers.
So many people obtained loans (houses) they could not afford, and despite the rules for modifying their loans, they could not get a modification. Those that had excessive interest rates because of their credit or their product; were left without any options but to lose their homes. Now, some are still recovering from the losses, as there are credit ramifications for foreclosures.
Those who had managed to pay their mortgages are afraid to risk refinancing their home. They read the news and know that the economy is still somewhat lacking instability.
Most people are smart enough to know that a refinance will make your principal balance higher, without sufficient assets to pay the closing cost out of pocket. With current interest rates higher than they have been in years, the risk and a higher payment are simply not worth it. Be careful and know what is being added to the principal balance of your loan.
Going Forward…New Home Applications
Homebuyers appear to be more in tune with the news of the economy and how to manage their credit obligations. They are also watching the housing market status, and have gained more knowledge about when to purchase, if they should purchase, and how the market is fluctuating.
News Is Another Factor That You Should Always Pay Attention To…
For instance, if you check out the MBA Newsroom, it reads something like this:
In the week ending December 16, 2022, housing applications rose about .09% following a 3.2% jump in the previous week. That was the highest in three months.
The refinance index increased by 6.000% from the previous week and .001% from the week before. Which was 85% lower than this week one year ago.
The refinance applications were 31.4% of the total applications. This was an increase from the previous week of 29.4%
The adjustable rate products (ARM), had a decrease in the lending rate of 7.5%.
There are not a lot of things to brag about the mortgage market these days with rates on the rise even though they have dropped slightly in the last weeks or so. Only minimal changes.
Millennials started their interest in purchasing a home. It is noted through a survey they found out that millennials do have a priority of homeownership. This has increased year to year to 54% in 2022 re: Corelogic
Okay, that sounds good, and my number one advice is to read these guidelines to be ready for first-time homeownership.
Summary:
Homeownership is a luxury for many and especially for those who are still working to pay off student loans and establish their work life.
This is due to the fact that homeownership comes with a price, just like most things in life. A person must know that buying a home means a commitment for at least 20 to 30 years, without a large downpayment. Or, until they have sufficient income to pay off their mortgage loan.
One of the most important facts for younger mortgage loan applicants is that they have a concrete knowledge of how to get the best mortgage loan product. The next is to be sure they can afford the price of the home they desire.
