When a jumbo mortgage balance can move into a conforming refinance
Why limits catch up
Crossover answer
Two things move toward each other: FHFA raises the conforming limit in most years when home prices rise, and every payment you make lowers your balance. A loan that started just above the line can end up below it within a few years. Checking each time FHFA announces new limits is a simple habit for jumbo owners.
Last reviewed against the primary sources listed below.
When to check
- After FHFA announces next year's limits, usually late in the year.
- After a large principal payment.
- When rates drop and you are already thinking about refinancing.
Switching questions
Does my loan automatically become conforming when limits rise?
No. Your existing loan keeps its terms. You would need to refinance to get a conforming loan.