The term “conforming” means that a loan adheres the limits set by Fannie Mae and Freddie Mac.
A Conforming Mortgage Loan is a conventional home loan that equals or is less than the government limits established by Fannie Mae and Freddie Mac. The current limit for a traditional mortgage loan is $417,000; however, in some areas of the country this amount varies.
If you need to borrow more than the conforming loan limit your mortgage will be considered “jumbo” and you can expect to pay higher mortgage rates.
My name is Robert Regehr and I’m a personal finance blogger with a chip on my shoulder for banks and mortgage brokers that take advantage of my friends and neighbors.
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