New Jumbo Mortgage Rules’ Effect on Expensive Areas

On Saturday October 1, the size of jumbo mortgage loans available to Fannie Mae and Freddie Mac will get smaller, changing the mortgage landscape.

According to a recent Yahoo! Finance article, this will have a greater effect on expensive zip codes, like many in the Bay Area and peninsula.

“In expensive housing markets where prices have fallen, the limits will drop the most,” reported Yahoo! Finance.

While the new lower limit of $625,500 — down from today’s $729,750 — is likely enough to cover a house in many places in the country, that is not the case everywhere.

To read more about these new limits and what they mean for expensive zip codes, read the full article here.