New 2006 Loan Limits

Freddie Mac announced its new single family mortgage loan limit will increase from $359,650 to $417,000 on January 1, 2006. This means a possible mortgage interest savings may be $24,700 over the life of a 30-year fixed-rate loan. Loan rates over the conforming limits are usually at 1/4 point higher (known as jumbo rates). In California where there are about 19 counties over the state's current median price, this means even more individuals can qualify for the median price home.