Fannie Mae and Freddie Mac Loan Limit Rises 5.38%
With this year’s rise, the loan limit has increased for the fourth year in a row after ten years of stagnation between 2006-2016. Despite no movement in the ten year period prior, the loan limit has risen $93,400 since 2016. In 2016, the FHFA increased the conforming loan limits from $417,000 to $424,100. Then, the following year, the FHFA increased the loan limits from $424,100 to $453,100 starting in 2018. The year after that, the FHFA increased the loan limit from $453,100 to $484,350 for 2019. Mortgages originated in 2020 will have a limit of $510,400. Year-over-year this marks the 3rd highest raise since 2016. 2016-2017: 1.70% increase ; 2017-2018: 6.84% increase ; 2018-2019: 6.90% increase ; 2019-2020: 5.38% increase...Five Big Financial Reasons to Own Your Home
There are many reasons why consumers decide to buy their own home instead of renting. Of course many factors such as housing market, whether you have a high or low interest rate, and personal timing go into account, but below are a few financial positives of being a home owner. Owning your home forces you to save. Paying your mortgage and building equity in your home forces you to save money. Owning your home allows you to save on taxes. If you own your home, your monthly housing expenses are locked in through a consistent monthly payment based on your interest rate. If you were to rent, depending on your agreement your payment could be raised by a landlord. In most parts of the country renting is more costly than owning your own home. Getting a low interest rate allows your mortgage payments to cost less than what some landlords would be charging. Local real estate markets in Lee County and Collier County are part of this trend. This is the only investment you can make financially that will have increased personal connection. What other investment will you make that you will live inside of other than your primary residence? Building equity in your home while creating life long memories doubles the...Florida Home Value Rise Beats National Average
According to Zillow, the rate in price increase among Florida homes will beat the nation’s average over the next year. Home values in Florida are up 4.64% this year with an expected increase of 4.09% next year. Nationally, Zillow expects the value of homes to rise 2.2% over the next 12 months. Low interest rates are causing the local real estate market to heat up substantially. Understanding the affect of increasing home prices and low mortgage rates will allow informed investors to make sound decisions in this hot housing...New FHA Condo Rules Boost Affordability
According to a recent report by the National Association of Realtors, HUD will be enacting new FHA condo rules. These rules will change a few things, but most importantly they will extend the approval process to individual condo units and extend the FHA certifications of condominium developments from two to three years. This change will ease the compliance obligations put on condo boards likely adding to the total number of FHA approved condos. Providing additional affordable housing options will allow a whole new group of first time home buyers to enter the market. These changes, along with the already low FHA mortgage rates, will make it that much easier for families to buy a property of their own. These changes come as NAR and HUD have been working together to solve a recent decrease in condo lending in recent history and provide affordable options to more families across the United States. The rule changes will take affect in mid October...Connect With Us
