2010 Conventional Loan Limits for Rhode Island
For 2010, conventional loan limits for Rhode Island have remained at the same level where they stood in 2009, according the Federal Housing Finance Agency, the group that oversees mortgage investment giants Fannie Mae and Freddie Mac. These limits define the maximum loan amount for loans that may be sold to the agencies, which is an important distinction, as the secondary market for loans meeting these requirements is much more active than the secondary market for larger loans, meaning that loans that conform to these size requirements carry much lower interest rates.
For Rhode Island, the limits have remained flat in 2010 from their 2009 levels. The maximum loan which may be sold under these guidelines remains at $475,000 in Bristol, Providence, Kent, Washington, and Newport counties.
The importance of this program of extended limits is that it opens opportunity to a majority of homeowners to take advantage of interest rates that are historically low. At present, 30-year fixed interest rates average 5.09% for conforming loans, according to Freddie Mac. Loans fitting the extended limit, from $417,001 to $475,000 in Rhode Island have seen rates roughly 1/4 % higher in recent weeks, but still substantially lower than available fixed rates on larger loans. These loans are often referred to as conforming jumbo, or super conforming.
The program will expire in December 2010.
Dan Hartman is a Senior Mortgage Advisor with Province Mortgage Associates, a mortgage broker serving homeowners and homebuyers in Rhode Island, Massachusetts, Connecticut and New Hampshire. He can be reached by commenting on this article or by phone at (401) 263-8655.
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