Princeton, Montgomery Township Real Estate  - Somercet and Middlesex Increased Mortgage Limits

The greater Princeton NJ real estate market could benefit from the new mortgage limits. The new number  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. The higher the median prices in the county, the higher the new limit.

Princeton with it's high median prices did not get the maximum increase.  The new mortgage limit for Princeton got increased 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.

Hopefully these changes would help more homeowners with high-rate sub prime mortgages 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."

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