Fannie Mae announced on Thursday 11/12, that mortgage loan limits in high cost areas will be extended for all of 2010. For those of us in the Jersey Shore area, this is good news.
The mortgage loan limit for high cost areas will remain at $729,750. What this means is that instead of mortgage loans above $417,000 being considered jumbo loans, which carry a higher mortgage rate, the amount borrowed can be up to $729,750 and still be considered a conforming loan. While mortgage rates between $417,000 and $729,750 do carry a higher interest rate, it is usually minimal. The interest rate on jumbo loans is significantly higher than those on conforming loans, maybe 1% higher.