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Homeowners look to close before jumbo-conforming loan limits are lowered. News of mortgage rates hitting all-time lows and falling home prices have dominated headlines for many months and many homeowners have already taken action on locking in their rate. Those haven?t and are looking to refinance a big mortgage may want to act quickly.

The maximum amount for jumbo-conforming loans, which are mortgages that vary between $417,000 and $729,750 and can be sold to Fannie Mae and Freddie Mac, will be reduced to $625,500 on October 1st. Read on to learn more about the jumbo loan changes and whether or not your loan is affected.

What are Jumbo Loans? In most (but not all) U.S. counties, any mortgage loan of more than $417,000 is a jumbo loan. Jumbo loans often carry higher interest rates, more stringent underwriting guidelines and may also require larger down payments.

Who Is Impacted? According to the National Association of Home Builders, the decreased jumbo limits will affect more than 200 counties, and about 1.38 million owner-occupied homes would be pushed outside of the jumbo limits allowed by Fannie and Freddie.  Those shopping properties in some of the more high-cost areas such as San Francisco, Los Angeles, New York, New Jersey and Washington will most likely feel the effects of the limit change and may experience a tougher time closing if the purchase price is $750,000 to $1 million. Contact your {Company Name} mortgage specialist to discuss your mortgage and whether or not you'e impacted by jumbo loan limit change.

Act Now Though housing industry lobbyists have asked Congress to extend the current limits for another year or two, many borrowers and they're mortgage professionals are pushing to close by the September 30th in order to dodge the lower jumbo loan limits. Closing prior to the drop in jumbo loan limits could mean an interest rate difference of a full percentage point or more. Determine whether refinancing or purchasing an expensive property is an option by contacting your {Company Name} mortgage professional.

What If I'm Too Late? Those who aren't able to obtain a jumbo loan priced at a conforming rate may still be able to find affordable financing for the home of their dreams. Once jumbo loan limits drop from $729,750 to $625,500, fewer buyers will qualify for expensive properties, which may continue to drive more property price reductions. Call your real estate professional, Larry Minson (405-820-9506) with Old Town, Realtors and/or Keith Siess with Country Home Lending (405-360-1995) to discuss your home purchase/lending options.

Country Home Lending Source mortgage professionals are dedicated to keeping you informed of the latest market trends and mortgage options. Visit Country Home Lending Source online at http://homeloansokc.com, or call us today at 405-360-1995, to obtain custom loan options designed to fit your needs and help you obtain your home goals.