Two Ways to Benefit from the 2022 Conforming Loan Limit Increase

Home loans that conform to the Fannie Mae and Freddie Mac guidelines tend to have better terms than non-conforming loans. That’s why it’s good news that the Federal Housing Finance Agency (FHFA) recently announced that the conforming loan limits have increased to $647,200 for 2022. This is a $98,950 increase from the $548,250 loan limits of 2021. In some higher-cost areas, the loan limits could be as high as $970,800, which is a whopping $148,425 increase from the $822,375 high-cost loan limits of 2021. Click here to view a map of all the loan limits across the US. Here are two ways to benefit from this increase:


It may make sense for you to consider a new home purchase using the higher loan amounts. This may be the perfect time for you to lock in a long-term interest rate because many economists believe that interest rates could go up over the coming year.


It may be worth it to consider a home loan refinance if:

  • You currently have a home loan that is near the loan limit
  • You’d like to make some home improvements
  • You’d like to consolidate other debts into your home loan (such as home equity loans or credit cards)
  • You’re paying mortgage insurance and your home has increased in value from the time when you purchased the home
  • You anticipate a change in your cash flow situation in the coming months (college funding, retirement, elder-care, etc.)


That’s how much house prices have gone up in the past year!

About the author

ALG Mortgage was founded by a team of local entrepreneurs with deep roots in the mortgage, real estate, banking, public accounting, and digital marketing industries. As an expert independent mortgage agency, we are not tied to any one lender in the industry, allowing us to truly act as partners for the clients we serve, and ensure they end up in the absolute best option for their own personal situation.