Originally scheduled to be lowered in 2009 under the Housing and Economic Recovery Act, the Department of Housing and Urban Development recently released its loan ceilings for the Federal Housing Association. For high-cost single-family homes, this reduces the limit from $729,750 to $625,500. For low-cost housing, the FHA will keep the loan limits at $271,050. These limits will take place in over 650 counties around the US effective January 1st, 2014. Wells Fargo and Bank of America have followed the trend, adjusting their standard 30 year fixed rate mortgage rate as well as their 15 year fixed rate mortgage options.
As reported by Morning News USA, Wells Fargo’s 30 year FRM are listed as a charge of $4.250% and an APR of 5.486%. This is compared to Bank of America’s numbers of 4.500% with an APR of 4.639%, as reported by US Finance Post. As for the 15 year FRM, Wells Fargo has an interest rate of 3.875%, backed by an APR of 4.217%., while Bank of America’s numbers are listed as 3.750% and an APR of 3.903%.
The new loan ceiling touches on the fact that as 2014 approaches and the housing market settles in while continuing to recover, new regulations and laws will be implemented that will continue to change the market.