Refinance now or lose your chance to grab a lower mortgage rate. That's the situation that homeowners face in the country's biggest, most expensive real estate markets.Fannie Mae and Freddie Mac buy most mortgages, but they won't buy home loans above certain dollar amounts. Those loan limits will be reduced at the end of September in expensive housing markets. Some homeowners will be squeezed by the lowered loan limits. If these unlucky homeowners try to refi after Sept. 30, they will discover that they'll have to get jumbo loans with higher rates and fees and less availability.The changes will affect refinancers and home purchasers in hundreds of high-cost counties. Bankrate.com will walk you through the maze of "conforming" and "jumbo-conforming" mortgages to help you figure out whether the decreased limits will affect you, and help you decide what to do.
- Jumbo limits will fall on refinancers
If you want to refinance a mortgage of more than $417,000, your opportunity could be vanishing.
- Bigger mortgages will cost more
In many areas, borrowers seeking larger home loans will need to close by the end of September to avoid higher costs and fewer options.
- Video: Larger mortgages will cost more
Seeking a hefty home loan? Here's what you need to know about the upcoming, revised conforming loan limits.
- Refi with 5/1 jumbo ARM?
Considering a refi on a large mortgage? Here are the pros and cons of a 5/1 jumbo ARM.
- Map of jumbo loan limits
Should you apply now to refinance your jumbo loan? Bankrate's map helps you to decide.
- Fixed or adjustable-rate mortgage calculator
Should you stick to a steady rate or try an ARM? Our calculator can help you determine which is right for you.