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Some markets are artificially limited. In Texas you can only mortgage, by law, somewhere around $600k. Beyond that you have to get a “jumbo” loan that is at a h
by breckenedge 6y ago
Some markets are artificially limited. In Texas you can only mortgage, by law, somewhere around $600k. Beyond that you have to get a “jumbo” loan that is at a higher interest rate. Curious to see if that limit gets conveniently repealed.
- lotsofpulp 6y agoI don't think there's any law in Texas about mortgage size. What you may be referring to are the parameters of a "conforming" home mortgage loan. https://en.wikipedia.org/wiki/Conforming_loan https://en.wikipedia.org/wiki/Conforming_loan Conforming loans are subsidized by the US federal government because the US federal government buys them and so funding for them is basically limitless.
- breckenedge 6y agoYou're right, thanks for the link! $424k is the cutoff for a jumbo loan in Texas.