There is huge mortgage news that is going to affect the new year greatly for some homebuyers and homeowners. It was announced that the Federal Housing Finance Agency (FHFA) has set new loan limits that will be effective for loans that are closed on or after January 1.

Before and after

Fannie Mae and Freddie Mac conforming loan limits changed from $424,100 to $453,100. This is a 6.8 percent gain from the previous limit. Also, the conforming limit in high-cost areas increased to $679,650. To put all of this news simply, homebuyers and homeowners will now have the chance to qualify for a conforming rate instead of a super-conforming or jumbo rate. Conforming rates are normally always lower, so this could potentially help a lot of people out.

The maximum limits have changed twice in under two years, which is rare. All but 71 counties in the US will experience these new loan limits.