Yuba City home buyers, this recent change could benefit you.
When you purchase a home, the loan amount you require, not only impacts your interest rate, but also the amount required for your down payment. Looking back a few years that loan limit used to be $417,000. If you required a loan greater than that, you’d have been subject to both a greater down payment and a higher interest rate.
Here in lies the problem: home prices keep going up. So for the couple that’s looking to upgrade, or even buy their dream home this created an issue. The higher loan amounts left borrowers paying a higher interest rate, and required them to put down a larger down payment.
Well today that changed (11/26/19). New loan limits were announced, and that new limit is $510,400. Therefore, borrowers are more likely to get a great rate and have to put less down. Here is a link to the press release: https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Maximum-Conforming-Loan-Limits-for-2020.aspx
So if you currently have a JUMBO loan, it may make sense to consider refinancing (its very possible you could get a better rate). If you’re a new home buyer, we’d recommend you discuss this with your lender and see how these recent changes might benefit you.
As the areas premier insurance broker, we work with the areas top lenders. In the link below we’ve compiled a list of those recommended lenders, we work with on regular basis. We always recommend you work with a trusted Yuba City loan officer that can keep you up informed with the most up to date industry changes https://www.oakviewins.com/loan-officers/