Fannie Mae, Freddie Mac, Boost Single-Family Mortgage Limit to $417,000
Federal mortgage backers Freddie Mac and Fannie Mae announced this week that they will increase the dollar amount on single family mortgage loans they will purchase on the secondary market from “retail” lenders starting January 1, 2006.
The entities raised the loan cap from $359,650 to $417,000. The move assures that more loans will become “conforming” loans, allowing homeowners to qualify for lower interest rates. In its statement, Freddie Mac said the new loan limits will make it possible for 500,000 additional families to obtain cheaper loans, saving as much as $24,700 over the life of typical 30 year fixed rate loan.
