Some mortgage borrowers are about to get squeezed by the shrinking of something called the jumbo conforming limit.- advertisement -
In the country’s priciest housing markets, including Los Angeles, San Francisco and Washington, D.C., this year-end change means that borrowers need to act fast if they want to get a home loan between $625,500 and $729,750. A similar change affects other areas, too, but not necessarily with the same dollar amounts. The change in the jumbo conforming limit affects purchasers as well as refinancers.
Time is of the essence because it takes a few weeks not only to process a loan from application to closing, but to sell it on the secondary market after closing. At this late date, it’s better to skip the middleman and apply directly with a lender instead of through a mortgage broker.