In the Market: Loan limits may change soon

Posted By Nneka Madus In Your Home | No Comments

This weekly feature is a real estate news and information roundup from a millennial’s point of view. When a young professional moves from Indianapolis (median home price $125K) to San Francisco (median price $1 million), you can expect an adventure. Nneka Madus, an analyst in Bank of the West’s Mortgage Division, did just that and has plenty to share in her quest to own a home in San Francisco.

Two young women looking at laptop screen, smiling at what they've found. [1]I’ve had my fair share of guests — everyone wants to come visit me in San Francisco. Between visiting the historic landmarks, neighboring cities, and even catching a Giants game, I don’t blame my friends and family for wanting to visit whenever they can. Luckily, for the holidays, I still get back to my mom’s in Indiana so I don’t have to worry about people visiting me. But, for those who might need a break from year-end visitors, Quentin Fottrell from MarketWatch [2] guides you through the etiquette of refusing guests for the holidays.

If you’ll be looking for a home next year, you could end up having more loan options that you realize. Ben Lane from Housingwire [3] gives a full rundown on where the Federal Housing Finance Agency (FHFA) may increase loan limits on conforming loans in 2015. Currently, the conforming loan limit is $417,000, which is the maximum dollar size of mortgage loans that Fannie Mae will purchase and/or guarantee. Loans over this amount are called “jumbo” mortgages and their interest rates can be higher than the interest rate on loans under the conforming limit. Cities such as Seattle and Boston and dozens of others may benefit from proposed higher limits next year.

Deducting private mortgage insurance (PMI) premiums may be a no-brainer for many homeowners. But, Kelly Phillips Erb, a Forbes contributor [4], discusses how Congress still hasn’t decided on whether to retroactively extend several tax-related deductions and credits, including the PMI deduction that expired earlier this year. I’m no tax advisor, so please contact a tax professional to discuss your tax circumstances. If you own a home, you may want to check out some of the housing-related credits and deductions in this article and keep an eye out for Congress’ decision.

Although the housing market is still weak, many areas — like Denver and Las Vegas — continue to show improvement from the slow summer months. Brena Swanson from Housingwire [5] provides an overview of the top five improving housing markets.

 


Article printed from Bank of the West: https://changematters.bankofthewest.com

URL to article: https://changematters.bankofthewest.com/2014/12/02/market-loan-limits-may-change-soon/

URLs in this post:

[1] Image: http://blog.bankofthewest.com/wp-content/uploads/2014/12/women_laptop_crop.jpg

[2] Quentin Fottrell from MarketWatch: http://www.marketwatch.com/story/how-i-do-refuse-holiday-houseguests-2014-11-19

[3] Ben Lane from Housingwire: http://www.housingwire.com/articles/32162-fhfa-announces-conforming-loan-limits-for-2015

[4] Kelly Phillips Erb, a Forbes contributor: http://www.forbes.com/sites/kellyphillipserb/2014/11/24/10-expired-tax-provisions-that-might-affect-you-in-2014/

[5] Brena Swanson from Housingwire: http://www.housingwire.com/articles/32187-freddie-mac-here-are-the-top-5-improving-metro-markets-for-housing?inf_contact_key=7813e7df590298add503fc2db762f9a17be945790476ecf23b230a6c991b6698&page=1

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