2011 Conforming Mortgage Loan Limits By County, Including “Normal” and “High-Cost” Areas

Conforming Loan Limits Vary By Property Type

In 2011, for the 6th consecutive year, the 1-unit conforming mortgage loan limit is $417,000. The classification "1-unit home" stands for a single-family residence -- either detached, condo, rowhome, or townhome.

As authorized by Congress and signed into law by the White House, the official 2011 conforming mortgage loan size limits are, by property type:

1-unit properties : $417,000

2-unit properties : $533,850

3-unit properties : $645,300

4-unit properties : $801,950

Anything over 4-units is considered a commercial property and cannot be originated through Fannie Mae or Freddie Mac.

Note, though, that these maximum conforming loan limits are just a starting point. The actual loan limit varies by market.

Click here to get a conforming mortgage rate quote.

Conforming Loan Limits Vary By ZIP Code

Not every home is subject to the $417,000 Fannie Mae loan limit. Some homes -- specifically those in "high-cost areas" -- are granted loan limit exceptions that range all the way up to $729,750.

"High-cost" is defined by the median sales price of a region.

The expanded loan limits help homeowners in places like Loudoun County and Alexandria, Virginia, for example.  Homeowners don't have to take "jumbo" loans because their respective mortgages exceed $417,000. Instead, they get the same low mortgage rates as the rest of the country.

The same is true for homeowners in Bethesda, Potomac, and the rest of Montgomery County, Maryland.

Click here to check your local conforming loan limit.

But, just because a city is "expensive", that doesn't make it "high-cost". Take Chicago.

From Waukegan (north) to Calumet (south), and Joliet (west) to Lake Michigan (east), Chicagoland's prevailing loan limit is $417,000. This is because the government lumps the entire region into a single metropolitan statistical area and -- across that area -- the median home price is just "average".

For places like Lake Forest, Gold Coast, Lincoln Park, and Hinsdale, therefore, the conforming loan limit is stuck at $417,000.

What To Do When Your Mortgage Is "Jumbo"

There are 197 designated high-cost areas in the U.S., representing just 6% of the country. Mortgages that exceed the local loan limit are often called "jumbo" or "super jumbo" mortgages.

The good news is that jumbo and super jumbo mortgages are plentiful right now and the pricing is excellent -- you just have to know where to look.

Click here to get a conforming mortgage rate quote.

The best places to find jumbo and super jumbo mortgages right now are niche banks and portfolio lenders. They're giving low rates with loose LTVs. The key to eligibility is to have documented income and better-than-average credit scores. Jumbo mortgage rates are as low -- or lower! -- than their conforming mortgage cousins. It's because of how jumbo mortgage rates are made.

The window probably won't last long, however. As the economy expands, the forces that make jumbo mortgage rates low will disappear and rates will rise.

If your mortgage too big for local conforming limits and is jumbo or super jumbo, click here to get a jumbo mortgage rate quote. I lend in most states and can send you rates today.

How to remortgage

Reasons for remortgaging

Getting a better rate:

Typical reasons for remortgaging tend to be to get a better rate (especially if your initial deal period is over and you are about to revert to an uncompetitive standard variable rate), to consolidate debt or to release equity.

You may also have to remortgage if you want to move house. In such a situation, even if your lender will allow you to transfer your homeloan in theory, it will probably require a valuation of the property to ensure it meets its standards.

Remortgaging needn't only occur when your mortgage term comes to an end. Some people take out a new mortgage simply to save money on their monthly repayments. For example, you may take out a fixed rate mortgage only for interest rates to plummet, leaving you stranded on a higher rate. Remortgaging to a more competitive rate in these circumstances may make financial sense. Bear in mind that remortgaging is not a cost-free process though. Your current mortgage may carry penalties or charges if you try to leave it early, plus there will probably be costs associated with the new deal, so factor all of this into your decision.

In the past, remortgages were popular as homeowners sought to withdraw equity from their properties to fund the likes of home improvements or holidays. In the current economic climate with slowing house prices and higher interest rates, this is not such a common occurrence and a remortgage should really be driven by need rather than luxury.

The sub-prime remortgage

If you have an impaired credit record (you may have previously been declared bankrupt or received a County Court Judgement) and are looking to obtain a mortgage, you will probably be offered a sub-prime mortgage. This is likely to be at a higher interest rate than a mainstream mortgage as you represent a higher risk to the lender. But the intention of sub-prime mortgages is rehabilitation. If you successfully make your monthly mortgage repayments, when you come to remortgage it will make it more likely that you will be able to access a standard mortgage deal.

At the moment, many lenders have pulled out of the sub-prime mortgage market. This could make it difficult, or perhaps even impossible, for you to remortgage.

Refinancing Second Mortgage

Second mortgage refinancing offers fixed rate refinance loans and lower payments with debt consolidation and subordination options for FHA, conventional and non-conforming loans.  Refinancing second mortgage loans and combining the debt into one mortgage with a fixed interest rate ensures financial protection against inflation when the Fed starts hiking rates.

In the mortgage industry, nothing is more popular than refinancing your first and second mortgage together. It may be a wise move to refinance your existing second mortgage with your first loan into a fixed rate FHA mortgage that save you money by combining your first and 2nd mortgage together. You can also take out a new 2nd mortgage and lock into a fixed rate loan with fixed terms and fixed payments for the life of the loan.  Ask your loan officer about your eligibility for the no cost mortgage refinance program.

Nationwide Mortgage Loans is a second mortgage banker who offers low rate second mortgages and home equity loans for refinancing and FHA mortgage refinancing for consolidating debt. You can also refinance your existing HELOC with an interest only 2nd mortgage or a fixed rate home equity loan for people with good and bad credit. Refinance your variable rate line of credit and lock into a FHA mortgage or a second mortgage with a fixed interest rate for the term of the loan.

There is limited time left to take advantage of still-low interest rates before an inevitable rate hike that could cost you lots of money. If you're considering refinance options to secure funds for debt consolidation, home improvement projects, or to provide that extra needed cash, Nationwide Mortgage Loans can help you find the Refinancing Second Mortgage options that best fit your needs!

We have years of experience in the arena of Refinancing Second Mortgage programs. We are dedicated to making sure that your lending experience is as streamlined and stress-free as possible. 

We have years of experience in the arena of Refinancing Second Mortgage programs. We are dedicated to making sure that your lending experience is as streamlined and stress-free as possible.

Convert Your Adjustable Rate HELOC to a Fixed Rate Second Mortgage and Save Money!

Low Rate 2nd Mortgage Refinancing

Fixed Rate Home Equity Refinance

Refinance Debt with a Tax Deductible Second Mortgage

Home Credit Line Refinancing to 100%

Borrow up to 125%

Simple Interest Debt Consolidation

5 Reasons for Refinancing Adjustable Rate Second Mortgages

Fixed interest rates are lower than credit line rates at this time.

Consolidating Adjustable rate loans can lower your payments and save you money.

Reduced mortgage payments will increase your cash flow.

Fixed rate terms are better for planning your budget because the monthly payment is already determined.

You can be out of debt quicker because the amortization schedule is calculated with simple interest.

remortgage with bad credit

People with bad credit believe be, that getting extra credit is impossible.  Because they have an adverse credit status, and it’s much more common that you would believe.  Well, it is possible for those with not-so-good credit to get bad credit remortgage. Being a home owner you will find it’s the cheapest way of consolidating a lot of debt, by reading this article you are making sure you going about it the right way with these tips…

First though, what is a Bad Credit Remortgage?

It’s an option to for a home owner to release equity in their property, raise money and also an option to consolidate debt.

here are many questions to be answered before you even put pen to (application) paper.  Being a home owner puts you in a dominate position as even if you do have adverse credit, remortgaging becomes more feasible.  consider for example interest rates on a remortgage,  you can finder lower rates, go online and you will find many to bad credit remortgage deals to choose from, some if not all come with a pre-payment penalty.

With a remortgage can make your finances more manageable and help boost your credit score.  And there are so many types of remortgages to choose from.

Fixed.
Variable.
Capped Discount.
Flexible.
Tracker.
You will have to use your due diligence and seek out the type of product that is best for your circumstances.

The Benefits

You may have debt that could be credit cards, motor loans and existing mortgages – most people will use remortgaging to consolidate debt, repay some of all of your loads and settle on one lump sum payment, which can make one feel assured of lessening the burden of judging so many debts

A Friendly Warning

Do you believe remortgaging your home to be the real answer?

Like all things associated with debt there are pro’s and con’s.

First don’t be confused by the term remortgage – which simply means to change mortgage providers.  Whilst having a second mortgage is just that, paying for two mortgages on your home.

Yes you can/will release much needed cash, and get very favourable rates are always associated with remortgages. You will always be lower than you would with an interest rate on an unsecured loan simply because the remortgage is a secured loan.

You need not worry your finances, so long as you keep up payments. Weigh up the Pro’s and Con’s and please be honest about your ability to repay your remortgage.

Mortgage Rates Maintaining Status Quo

Prices of mortgage backed securities held to a tight range yesterday, closing the day in essentially the same place they opened. The lack of volatility in MBS prices allowed lenders to keep mortgage rates near five month lows. Yesterday's main event, besides weakness in the dollar and record high gold prices, was the Treasury Department auction of $39billion 3 year notes. Auction demand could be described as below average, but not weak enough to warrant a rise in rates. Strong demand for our nation’s debt is one of the main factors helping to keep mortgage rates near historic lows.

The data calendar is thin today. This morning the Mortgage Bankers’ Association released their weekly applications index. This data tracks the weekly change in the number of applications at major lenders for mortgages. Last week’s report came in surprising low, applications for both refinances and purchase loans dropping significantly. Today’s report showed a large increase in new applications. The overall application activity index jumped 16.4%. The purchase index increased by 13.2% and the refinance activity moved higher by 18.2%. .

Increased application activity may increase the time it takes for lenders to process and approve loans. If you are hoping to take advantage of the first time home buyer tax credit, which expires at the end of next month, increased turn times may delay your closing beyond that date, which disqualifies you from use of the credit. I encourage anyone looking to take advantage of this tax credit to get your application submitted even if you haven’t found a property yet. Some lenders will still underwrite your loan with a “to be determined” address. This will speed up the approval process once you find a home. There is a possibility that this tax credit will be extended, but as it is right now it is set to expire at the end of next month. The clock is ticking.

At 1pm eastern, the U.S. Department of Treasury auctioned $20billion 10 year notes. This auction is more relevant to MBS values than yesterday’s 3 year note auction as the average life of a new mortgage loan is much closer to 10 years than 3. As always with Treasury auctions, market participants look at the demand to gauge its success. Strong demand, especially from foreign accounts, has kept treasury yields low which contribute to low mortgage rates. Matt and AQ covered the auction MBS Commentary blog.

Reports from fellow mortgage professionals indicate that par 30 year conventional mortgage rates are holding in the 4.625% to 4.875% range for well qualified consumers. To secure a par rate you must have a FICO score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. There are a couple lenders offering rates at 4.5% for consumers with exceptionally high FICO scores and lower loan to values. If you are seeking to access equity in your home, you should expect either a higher interest rate or additional fees due to the loan level price adjusters that were added by Fannie Mae and Freddie Mac last year.

As I have been saying in recent posts, floating remains risky. This is not a lock alert but I am continuing to advise my clients to lock in now and take advantage of the great rates being offered. I am continuing this stance as you have more to risk by floating than you can gain meaning rates could move a little lower but there is more room above leading to higher rates.

Be sure to do homework before applying for a loan

Doing research and asking questions before sitting down to sign off on a mortgage loan are essential for first-time home buyers navigating through the home purchase process.

That was the message some local Realtors and a real estate attorney had for potential home buyers Saturday during a free seminar at CiCi's Pizza in Hendersonville.

The clock is ticking for first- time buyers wanting to get into the housing market in order to take advantage of a tax credit of up to $8,000 that ends on Nov. 30 of this year. The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after Jan. 1, 2009, and before Dec. 1, 2009.

Tasks such as finding out how much home you can afford, checking your credit and getting an inspection done once you decide on a home purchase will save prospective home buyers a lot of grief down the road, said Cheryl McDonald Jones, an attorney with The Yelverton Firm in Hendersonville.

"Make sure you understand the type of loan you are getting so you understand the PMI (Private Mortgage Insurance) that goes with it," she said. "PMI is figured on how you are assessed when you apply for the loan and it depends on your income, the amount of money you put down, things like that. Also, be careful how many times your credit is checked. Anytime someone checks your credit, it dings your credit and a lot of people don't realize that. It's not a huge hit, but if you are borderline (for loan approval) it can be enough to drop you below the threshold and you won't get the loan."

Potential home buyers should plan on a monthly house payment taking up about 29 to 31 percent of their budget, Jones said. There are some loan programs that will not allow the home buyer to exceed 31 percent, she added.

Another mistake some first time home buyers make is having expectations that are too high, the attorney said.

"A lot of first time home buyers watch too much HGTV (Home and Garden network) and they are expecting a picture-perfect home for a low price," she said. "There are lots of good products out there, but be prepared to do some work on some of these products because this is an expensive area to live in."

Another tip is to make sure you get a home inspection done to find out the structure's condition before you sign on the dotted line, Jones said.

"I'm a huge fan of independent home inspections -- I get paid to be paranoid," she said. "I know it costs some money up front, but it will give you piece of mind going forward."

Opportunities for home ownership in the Henderson County market are getting better, said Brian Fraga, a Realtor with Prudential Lifestyle Realty, a local real estate firm and sponsor of the seminar.

While the local housing market has been down in recent months, there are signs of improvement, he added.

"We are very optimistic that the market is in a true rebound and much of that is attributed locally to an improvement in the Florida market and other areas in the country where people move here from," Fraga said.

Beware An Abusive Tactic From Mortgage Loan Originators

Of all the issues that have bedeviled regulators and legislators dealing with consumer protection, perhaps the most troublesome have been the abuses connected to the way mortgage loan originators are compensated.

Most reform proposals aimed at curbing abuses by mortgage brokers don't apply to loan-officer employees of lenders. And many of the less-thoughtful proposals for curbing broker abuses would eliminate the borrower's option to have the lender pay the broker's fee in exchange for a higher rate.

The good news is that there has been progress on this issue. Recent proposals by the Federal Reserve to amend truth-in-lending rules seek to address abuses by loan officers as well as brokers. The revised truth-in-lending rules would also retain the option borrowers currently have in how they pay mortgage brokers.

The problem is not how much loan originators make, but how they make it. Under existing arrangements, loan originators, who deal directly with borrowers, can often increase their income by inducing their customers to make bad choices. This works because most borrowers don't have the information and education needed to protect themselves. Many loan officers don't succumb to this temptation, but too many do.

The abusive tactic that has generated the most controversy centers on payments to brokers by wholesale lenders for delivering interest rates that are higher than the "par rate" -- the rate at zero points. For example, a lender delivering prices to a broker who quotes 5 percent on a 30-year fixed-rate mortgage at zero points might pay 1 point for 5.25 percent, or 2 points for 5.5 percent. (A point is 1 percent of the loan amount). These payments by a lender are called "rebates," or "negative points." When pocketed by a mortgage broker, they are called "yield spread premiums".

There is nothing inherently abusive about yield spread premiums -- quite the contrary, when properly used they help to provide a valuable option to borrowers. But they can be used abusively. Here are illustrations of proper use by an ethical broker, and abusive use by a deceitful one.

Ethical Broker: Mrs. Jones, my fee is 1 point. If you select the 5 percent loan, you will pay me at closing. As an alternative, you can take the 5.25 percent loan and the lender will pay my 1 percent fee.

Deceitful Broker: Mrs. Jones, your rate is 5.5 percent. The good news is that my fee is being paid by the lender so my services to you are free.

Loan officers who work for a single lender can also be abusive, but in a different way. They receive retail prices from their back offices, meaning that their commission is included in the posted price. But the loan officer typically has discretion to charge the borrower more than the posted price, termed an "overage," if he can get the borrower to accept it. The loan officer shares the overage with the firm. Overage abuse has attracted much less attention than yield spread premiums abuse, but there is no reason to believe that it is less pervasive.

The Fed proposal would prohibit payments to mortgage brokers and loan officers that are based on a loan's "terms and conditions," including the interest rate and points. The rule would bar a wholesale lender from paying a broker more for a loan with a higher interest rate than for the same loan with a lower rate. However, the rule would not keep lenders from offering rebates on loans with above-par rates, which brokers could offer to clients to cover their fee or other settlement costs.

The rules are a bit rigid in that a broker must be paid entirely by the borrower or entirely by the lender; he cannot be paid by both. The rationale is that borrowers may get confused if the broker fee is shared by the two parties.

The Fed's proposed rule would also bar lenders from offering higher commissions on loans carrying overages. It doesn't bar overages, but it removes all financial incentives for the originator to charge one. This undercuts claims by the National Association of Mortgage Brokers that efforts to rein in yield spread premiums abuse alone would create an "unequal playing field."