Conforming-Jumbo Limit To Drop In January

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Last minute notice: The loan limit for conforming-jumbo mortgages will be lower after this month (December). These are loans that are more than the normal conforming limit of $417,000 but lower than the higher conforming-jumbo limit allowed in certain counties where homes are particularly high priced.

The conforming-jumbo limit amount is different in each county depending on the area’s median cost of homes. In Los Angeles County, for example, the limit is $729,750. In many counties the conforming limit remains at $417,000. When a loan is more than the conforming or conforming-jumbo limit, it becomes a jumbo loan carrying a substantially higher interest rate.