The Obama administration could recommend reducing the size of mortgages eligible to receive government aid, The Washington Post reported this morning.
Currently, mortgages up to $729,750 are able to receive backing from the federal government, and these loans usually have lower interest rates than those that are not government-backed. Long-term (30-year) loans under $417,000 are eligible to receive the lowest rates, and as the size of the mortgage increases, the rates also go up.
The Post reports that the loan limit for mortgages receiving government support will likely be lowered to $625,500 as of September. The proposal will be part of a report expected next week that will also look into the fate of Fannie Mae and Freddie Mac.
Borrowers who will most be affected by this change are those taking out loans between what could be the new limit ($625,500) and the old limit ($729,750). From The Post:
Keith Gumbinger, a vice president at mortgage research firm HSH Associates, said he expects that borrowers who took out loans between $625,500 and $729,750 would pay “slightly more expensive rates” if the current proposal is enacted, “but jumbos were always slightly more expensive.”
This article originally published at https://dc.urbanturf.com/articles/blog/obama_administration_poised_to_propose_mortgage_changes/2951.
Most Popular... This Week • Last 30 Days • Ever
The news anchor dropped the price for his sprawling DC home, but it still could set a... read »
There are five projects in the works around Audi Field which could bring nearly thous... read »
The storied unit along P Street is now looking for a new owner.... read »
DC is getting close to meeting Mayor Muriel Bowser's goal of producing 36,000 new ho... read »
The development pitched for the site of a Goodwill store in Arlington got the key app... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro