Conventional Loan Limit Increase for 2022
- In 2021, the conventional mortgage loan limit topped out at $548,250 on single-family residences. This meant that any mortgage loan on a SFR that was above that fell into the jumbo loan category. Jumbo loans have much stricter qualification guidelines for Debt to Income ratios, credit, income types, reserves, and down payment requirements. They are just more difficult loans in general.
- We saw a ton of jumbo loans in 2021 due to the huge increase in the prices of homes. We even used 1st and 2nd lien mortgages to avoid jumbo loans for many buyers which resulted in higher monthly payments and variable interest rates on the 2nd mortgage.
- The new conventional loan limit for SFR in 2022 is $647,200. This will help a ton of buyers in 2022, making it easier to get financing for their homes and reducing the down payment requirement for many.
If you're planning to buy a home in Montana in 2025, mortgage pre‑approval should be your first move. Whether you're searching in Bozeman, Red Lodge, or Billings, getting pre‑approved strengthens your offer, helps define your budget, and speeds up the buying process.
Montana ARM vs 30‑year fixed.
Refinancing your home in Montana can be a smart financial move, but timing is everything. With interest rates, home values, and personal financial goals all playing a role, choosing the best time to refinance can save you thousands.
We've been freezing our tails off here in Montana for the last couple of weeks. The cows are getting ready to calve and we all need a thorough thawing out! I hope you have stayed reasonably warm. We have some interesting things to talk about today.
One of the biggest conundrums facing homebuyers today is how to manage the transition of buying a NEW home with the equity in your current home as down payment. It's quite puzzling and stressful. Imagine, you have found the house of your dreams and you want to put in an offer before anyone else steps in front of you, but you haven't even started the process of listing your home for sale, let alone found a buyer. You could put in an offer on the new home with a Home Sale Contingency, meaning you would have to sell your current home prior to closing on the new home.
Are you a fan of solicitors calling your phone trying to sell you something? Me neither. I love hearing from friends, family and folks in business that I KNOW but I am not a fan of companies I don't know calling to sell me something. I think most of my clients feel the same. Am I wrong?
As we move into another holiday season and a new presidential administration, home buying is still a bit challenging. Buyers are struggling with monthly payment which has been generated by higher prices coupled with higher interest rates. It has made for a conundrum that has been hard to swallow. However, FEAR NOT!
I hope you can feel the wind down of the year and are preparing for a lovely holiday season ahead. This time of year makes me think about home and how lucky we are to be a small part of a family's journey to get there.
This is going to be a common statement this week. The FED dropped the FED Rate by 50 basis points on the 18th of September. The whole mortgage world was supposed to get better, right? Wrong. When my clients and realtors call me and mention the FED dropping rates and how that is going to make mortgage rates better, I always remind them, while SOMETIMES mortgage rates can mirror the FED rate movement, often they do not. Look what happened over the last few days.
I would definitely say that the mortgage industry is about the slowest to catch up with the times. Sometimes it feels like a grumpy, curmudgeon grandpa that won't consider anything other than "his way or the highway".
