These changes represent an increase in area median home prices, and county changes are based on local rates of appreciation.  These changes should allow home buyers more flexibility and more favorable loan terms in areas where home prices have seen increases over the past year.  One major perk of using conventional financing is the ability to finance up to 95% of a home purchase, having only a 5% down payment requirement.  For some borrowers and situations, conventional loans require only a 3% down payment, making it possible to achieve the goal of home ownership without bringing in a larger down payment that many jumbo loan products require.

Another perk of conventional financing is competitive rates and mortgage insurance terms for those with excellent credit.  For those with good (but not exceptional) credit, conventional financing is another great option, since most jumbo financing options either require excellent credit (leaving those without excellent credit with minimal options), or coming with higher rates.

2022 loan limits are in effect for loans delivered to Fannie Mae & Freddie Mac in calendar year 2022, but loan applications can begin being processed under the new loan limits effective immediately.  Your MasonMac loan officer can further explain how the increase in loan limits may be able to assist you in getting better loan terms or qualifying for more home.

For an interactive map that shows loan limits for your specific county, you can click here .  If you have questions on how these loan limits can help you, or any other mortgage related questions, you can ask an expert here.

The post 2022 Conventional Loan Limits appeared first on Mason-McDuffie Mortgage Corporation.

With the final quarter of 2021 under way, we expect to see a lot of forecasts and announcements around changes as we head into another new year.  Over the next month, 2022 loan limits will be announced, lenders will begin to make a final push to finalize their loans needing to close before year’s end, and planning and speculation for the new year will begin.  Much of that speculation and forecasting is already underway.

One forecast that is consistent across many economic experts is one showing home appreciation forecast to increase through 2022.  With 2021 being a tremendous year for appreciation and supply & demand metrics out of whack and heavily favoring sellers in most markets, it’s no surprise appreciation is expected to continue.  With many markets in 2021 seeing nearly 20% appreciation rates, 2022 is expected to be another big year, with forecasts coming in from Goldman Sachs with an expectation of 16% appreciation.  With the median US home price around $300,000, that would mean purchasing a home at $300k today would have a home worth $348,000 at the end of 2022!

Not all forecasts are quite as optimistic though, with Zillow’s forecast model predicting a jump of 11%, and Corelogic much lower at 2.2%.  It should be noted though, that Corelogic has pretty consistently missed the market on home value forecasts, actually forecasting a drop in home values for 2021.  A few other economic hubs have forecasts in between Zillow & Corelogic’s guesses.  Bottom line, though, is that just about everyone in economic circles believes home prices will continue to rise in the new year.

What Does This Mean For You?

If you’re a homeowner, it means you’ll enjoy a nice bump to your home equity position and have some options if you need to access home equity for things like renovations or to pay off other outstanding debt.  If you’ve recently purchased and have PMI, it may also mean you’ll have an opportunity to reduce your PMI or get rid of it altogether should your home appreciate enough!

If you’re a potential home buyer, it means that acting sooner rather than later is in your best interest.  Homes will likely be more expensive as the months go on, and with supply chain troubles still occurring, odds are that there will not be nearly enough supply of new homes coming to meet current demand.  This could mean another year of limited inventory and competitive situations, but the upside is that once you own, the appreciation begins to work for you, and no longer against you.  With rates on mortgage loans also expected to rise in 2022 (the MBA has forecast that rates will approach 4% in the new year), making a purchase with rates still near historic lows and with values where they sit currently, savings could be substantial for those who buy early in the year rather than waiting.

How We Can Help You

At MasonMac, we’ve invested in modern tools and have access to data nationwide, so we can look at data down to the zip code to provide you with solid advice and show you what home values are likely to do in a specific area.  We also have no- and low-down payment mortgage options so that even while home values climb, we can offer loan products that don’t require breaking the bank to get into a new home.  With tools like our “cost of waiting”, “buying power”, “rent V buy”, and “bid over ask” platforms, we can show you how to be a savvy buyer and structure a great offer to increase your odds of getting your home in a competitive situation.  And with full underwriting approval available before you find a home, you can rest assured you’re in the best possible position to become a home owner.

How else can we help you?  Contact us today with any questions, or if you’d like to see market data for your area (or any area in the US!) or be connected with a loan officer that can guide you down the path to home ownership.  In 2022, owning a home is forecast to be solid ground financially, and will be another year of proving that your financial security begins at home!

The post Homeowners Should Expect Appreciation in 2022 appeared first on Mason-McDuffie Mortgage Corporation.