December 1st, 2004
FREDDIE MAC ANNOUNCES YEAR 2005 MORTGAGE LIMITS
New Limits Will Save Borrowers Up to $24,800 In Interest
McLean, VA – Freddie Mac today announced an increase in its
single-family mortgage loan limit from $333,700 to $359,650
effective January 1, 2005. This increase in conforming loan
limits is based on the October-to-October changes in the
average house prices, as published by the Federal Housing
Finance Board (FHFB), and on Supervisory Guidance issued by
the Office of Federal Housing Enterprise Oversight. The FHFB
figures come from its monthly survey of lenders. Both new and
existing homes are included in the survey.
The increase in mortgage loan limit makes it possible for an
estimated 340,000 additional families to obtain lower interest
rate mortgage financing. Freddie Mac estimates that total
mortgage interest savings for a borrower with a typical
30-year fixed-rate mortgage at the new conforming loan limit
is as much as $24,800 over the life of the loan.
Effective for deliveries after January 1, 2005, the new loan
limits for mortgages on one-to-four family properties will be:
$359,650 for mortgages on one-family properties (up from
$333,700)
$460,400 for mortgages on two-family properties (up from
$427,150)
$556,500 for mortgages on three-family properties (up from
$516,300)
$691,600 for mortgages on four-family properties (up from
$641,650)
November 30th, 2004
Fannie Mae announces new higher limits for conventional
mortgage loans.
Washington, DC – Fannie Mae announced today that it is
increasing the conventional mortgage loan limits, as a result
of which Fannie Mae estimates that an additional 271,524
homeowners would be eligible to obtain a conventional home
mortgage.
Fannie Mae is the nation’s largest source of mortgages and it
sets underwriting standards for conventional mortgages.
Mortgage companies and banks that follow Fannie Mae standards
can sell their mortgages to it and generate additional capital
for lending.
The New mortgage loan limit for a single family home is
now
$359,650. Limits for multi-unit
mortgages
for 2005 will be as follows: two-family mortgages $460,400;
three-family mortgages $556,500; and four-family home
mortgages to
$691,600. The 2005 loan limit for second mortgages will be
$179,825.
Fannie Mae makes annual adjustments to the
mortgage loan limits, making it possible for homeowners to
take advantage of lower mortgage rates as real estate prices
rise. The conforming mortgage loan limit adjustments are based
on the October-to-October changes in the average home price,
as published by the Federal Housing Finance Board.
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