The greater Princeton real estate market is part of the new mortgage limits. The big number announced yesterday is $729,750. This is the new mortgage limit for loans guaranteed by the Federal Housing Administration. The previous limit was $417,000. 19 counties in New Jersey had this limit increased.
Montgomery township, and the rest of the Somerset county as well as Middlesex County, are among 12 counties who received this increase. The new limits were derived from the median home prices in each county.
It could be surprising that Princeton with it's high median prices only got the increase to $440,000. The same applies to Hopewell, West Windsor, and the rest of the Mercer county, because of the county's lower median price.
FHA backed loans also saw increases, with the highest limit being $729,500 and the maximum loan allowed for lower price areas -to $272,050. These limits before this change were capped at $362,790 and $200,160 respectively.
The hope for these changes is to offer more homeowners with high-rate sub prime mortgages ability to refinance into federally insured loans. Another idea behind this initiative is to get investors more interested in the more expensive mortgages, backed by Fannie and Freddie, and thus to drive down the interest rates. Lower interest rates would in turn help home buying and refinancing, and that to coin the expression is a "Good Thing."
If you would like to learn more about the housing market in the greater Princeton area:
15 Reasons you should not buy a home now ...5 reasons you should
What Did That House Sell For? January 2008
Who Else Wants Clarity About Real Estate Prices
Is Princeton Real Estate Local or Global?
Secrets To Buying A House In This Market
Secrets To Home Selling In A Bad Market
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Please contact Faina Sechzer at 609-553-4175 with questions about real estate, homes for sale and/or listing your house to sell, and relocation assistance in Princeton, Montgomery Township, West Windsor, Hopewell, and Lawrenceville New Jersey. Referrals are accepted.
If you are moving out of the greater Princeton area, please inquire about the countrywide relocation program.
Copyright 2007 Faina Sechzer All rights reserved. This information cannot be copied, reproduced, transmitted, distributed, displayed or published.
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