If you’re considering mortgage refinancing in the New Year and have a high dollar value home loan, the 2012 conforming loan limits are something you need to be familiar with. The difference between conforming refinancing mortgage rates and jumbo rates could be hundreds of dollars in your monthly payment. Here’s an article by Dan Green of The Daily Mortgage Report.com with an explanation of the 2012 conforming loan limits:
Updated: The jumbo and conforming loan limits provided below reflect the 2012 loan limits of each U.S. county. If you get your local jumbo and conforming loan limit information somewhere else, make sure that source is accurate and up-to-date.
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http://themortgagereports.com/325/2012-conforming-jumbo-loan-limits
2012 Conforming Loan Limit Definition
Simply put the conforming loan limit for mortgage refinancing is the most you can borrow under the rules set by Fannie Mae and Freddie Mac. “Conforming” boils down to the maximum amount you can borrow for Fannie and Freddie to back your home mortgage. If you’re above the conforming loan limit your home loan is considered a jumbo mortgage.
If you have a jumbo mortgage it doesn’t mean you can’t qualify for mortgage refinancing, it simply means that because your mortgage is no longer backed by the government you’re a higher risk for lenders meaning your refinance mortgage rates and payment amount are going to be higher.
For most homeowners the 2012 conforming loan limit is $417,000.
If you’re considering mortgage refinancing in 2012 to take advantage of today’s low refinance mortgage rates, it’s extremely important to pay close attention to your out-of-pocket expenses, whether your home loan is considered conforming or jumbo. The reason fees are so important is that if you’re not able to break even recouping your out-of-pocket expenses like the mortgage loan origination fee, you’re losing money from mortgage refinancing no matter how low your interest rate.
You can learn more about paying less refinancing your home without unnecessary fees by checking out my free Underground Mortgage Videos.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
