From Moneyland | TIME.com
On Saturday, federally guaranteed loans — the limits on which were increased during the financial upheaval of 2008 to as high as $729,750 in some parts of the country — will be capped at $625,500. Homebuyers looking to finance more than that amount will either have to plunk down larger down payments to stay within the limit or resort to jumbo loans, which carry higher interest rates.
This change to the “conforming loan limit” will certainly sting a number of homebuyers in the country’s pricier markets. But my analysis suggests that, nationally, the change is unlikely to rattle the fragile housing recovery.