What does a rise in the Fannie Mae & Freddie Mac conforming loan limit mean for home buyers? Ramez Fahmy is a mortgage lender and the branch manager for Caliber Home Loans in Rockville Maryland. Ramez explains what the new conforming loan limit means for buyers and what other options are available for buyers at this time.

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:49  Who are Freddie Mac and Fannie Mae

1:00 They are the largest purchaser of mortgages in the country

1:20 largest purchasers of mortgages in the country

2:04 What is a conforming or conventional Loan?

2:24 Home Ready and Home Possible are programs available for home buyers

3:00 What are Fannie Freddie raising the loan limits?

3:47 conforming loans have gone up to $726,200

4:07 High cost areas have higher loan limits 150% higher than other areas

4:24 DC Metro area high balance loans are available up to 1 million 89 thousand dollar loan meaning you could do this with only 5% down payment

4:45 What are the risks for a home buyer?

5:10 Important to consult with a mortgage professional to know what you are comfortable spending for a monthly mortgage. Not just what you qualify for but what you are comfortable with each month

6:20 Be forthcoming with the lender regarding your monthly costs

7: 24 How do you see the raising of the loan limits impacting the market?

8:08 Biggest increase seen in a long time percentage wise

8:30 Have a frank conversation with a lender who can talk you through this process

8:51 Portfolio loans

9:35 Seeing more private loans in this market like adjustable rate mortgage programs

10:00 30 year fixed mortgage have been the norm but more buyers are considering ARMS and other options

10:27 What Chairman Powell said yesterday

10:55 downturn in mortgage rates

11:15 adjustable rate mortgages are often done with the intent to refinance in the next 12 -24 months

11:43 Sensational headlines don’t always match what is actually happening in the market

12:15 Reacting to headlines-avoid the herd mentality

12:50 Market conditions today as compared to a year ago

13:33 rates are higher today than a year ago but many buyers are using a temporary buy down

14:51 Meet with a lender and develop your plan of action

Learn how to navigate these market conditions

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