The housing market has been heating up for several years and 2016 may be the time to buy for a large number of first time buyers. Each and every year the Federal Housing Administration has to adjust FHA loan limits based on home prices in a specific county. Note that each county in the United States has a unique loan limit. At the present time the host cost ceiling is $625,500. Only the most affluent counties have an FHA loan limit at this level.
California has been through quite the roller coaster ride when it comes to home prices. During the mortgage crisis and housing market bubble a large number of homeowners lost a significant amount of money. In fact, some ended up with negative equity in their homes. As the value of the home plummeted the house became underwater and foreclosure and/or bankruptcy occurred. Those days are long behind us as the California housing market is very strong once again.
Those looking to purchase a home in any part of California will likely want to look at the updated 2016 California FHA loan limits. There are seven counties that will see an increase in FHA loan limits in the state of California in 2016 – Monterey, Napa, Riverside, San Bernardino, San Diego, San Joaquin and Sonoma.
Remember that overall mortgage interest rates will determine the amount a home actually costs when all is said and done. If a buyer purchases a home at $250,000 they are going to pay much more than that over the course of the home loan. This is why it is important to look at historical trends of mortgage rates. Mortgage rates have been extremely low for quite some time but will likely increase in 2016. Federal Reserve Bank chairman Janet Yellen increased rates in December 2015 and they could go up three (3) more times in 2016.
Before assuming that higher interest rates are bad news remember that a great mortgage broker can assist when it comes to saving money. Matthews NC Mortgage Broker Scott Hastings sees interest rates flat to higher in the year to come but notes that when searching for specific mortgage products some borrowers may end up saving quite a bit with the assistance of a business professionals. There are a number of government mortgage programs throughout the United States that have helped home buyers save money on a home loan payment.
It is also important for borrowers to recognize that the lowest possible mortgage rate may be unique depending on location. Finding the best mortgage rates can sometimes be a challenge for first time home buyers or those that are not financially savvy. For this reason, it is wise to do plenty of research on the Internet. There are multiple financial education blogs and websites that offer free information. Most of the front Google search results for financial keywords are very reliable.
