Tag Archives: #whyouworkwithmatters

Millennials: Looking for More Space?

If you’re a millennial, buying a home might be top of mind for you right now. Your generation is the largest group of homebuyers in the market today and has been since 2014, according to the National Association of Realtors (NAR). While other millennials are looking to buy for the first time, you may be one of the many, who are discovering you’ve already outgrown your first house.

If that’s the case, you’re not alone. The past two years brought about significant changes for many people. Today, many homeowners are reevaluating what they truly need in a house. As a recent report from the Wall Street Journal states: “The pandemic and the emergence of remote work accelerated millennial home-buying trends already under way…Millennials who already owned homes traded up for more space.”

So, if you’re now working remotely or simply have a growing need for additional space, it may be time to move. Even if you purchased your current home over the last few years, you can still move into a different one that has the space and features you’re looking for. That’s because there’s a good chance you have more equity than you realize.

As Diana Olick, Real Estate Correspondent for CNBCnotes: “The stunning jump in home values over the course of the Covid-19 pandemic has given U.S. homeowners record amounts of housing wealth. About 42% of homeowners were considered equity-rich at the end of last year, meaning their mortgages were half or less than half of the value of their home!

Growing equity can be the key you need to fuel your next move, especially if you’re looking to purchase a larger home. When you sell your current house, the equity that comes back to you in the sale can be used toward the down payment on your next home.

Equity plus low mortgage interest rates would make what might appear to be the “unaffordable” actually affordable.

Your purchasing power may be greater than you realize, making a move to a larger home a realistic option. 

Curious about your options? Let’s connect at 508-360-5664 or msennott@todayrealestate.com. We’re happy to answer your questions.

It’s important that you have the right information to make an educated and informed decision.

Have a good week…

Mari and Hank

Why It Just Became Much Easier To Buy a Home

Since the pandemic began, Americans have reevaluated the meaning of the word home. That has led some renters to realize the many benefits of homeownership, including the feelings of security and stability and the financial benefits that come with rising home equity.

At the same time, many current homeowners have decided their house no longer meets their needs, so they have moved into homes with more space inside and out, including a home office for remote work.

Many of these houses were previously owned by couples or individuals who finally concluded that their properties were just too big.

However, not every purchaser has been able to fulfill their desire for a new home. Here are two obstacles some homebuyers are facing:

  1. The ability to save for a down payment
  2. The ability to qualify for a mortgage at the current lending standards

But, both of those challenges have been mitigated to some degree for many purchasers. The FHFA (which handles mortgages by Freddie MacFannie Mae, and the Federal Housing Administration) is raising its loan limit for prospective purchasers in 2022. The term used to describe the maximum loan amount they will entertain is the Conforming Loan Limit.

What Is the Difference Between a Conforming Loan and a Non-Conforming Loan?

Investopedia explains the difference in a recent post: “Conforming loans are the only loans that meet the requirements to be acquired by Fannie Mae and Freddie Mac. Jumbo loans, which exceed the conforming limits, are the most common type of non-conforming loans.”

What Difference Does It Make to Me as a Home Buyer?

Forbes article earlier this year explains the benefits of a conforming loan and why they exist:

“Since lenders can’t sell non-conforming loans to Fannie Mae or Freddie Mac to free up their cash, they’re a bit riskier for the lender. This is especially true for jumbo loans, which aren’t backed by any government guarantees. If you default on a jumbo loan, it’s a huge blow to the lender.

Thus, lenders generally charge higher interest rates to compensate, and they can have even more requirements. For example, lenders who give out jumbo loans often require that you make a down payment of at least 20% and show that you have at least six months’ worth of cash in reserve, if not more.”

What Changed?

The FHFA has significantly increased its Conforming Loan Limits for 2022. Sandra L. Thompson, FHFA Acting Director, explains in the press release that:

“Compared to previous years, the 2022 Conforming Loan Limits represent a significant increase due to the historic house price appreciation over the last year. While 95 percent of U.S. countie​s will be subject to the new baseline limit of $647,200, approximately 100 counties will have conforming loan limits approaching $1 million.”

This means that more homes now qualify for a conforming loan with lower down payment requirements and easier lending standards – the two challenges holding many buyers back over the last year.

The Federal Housing Administration (FHA) also increased its Conforming Loan Limits for 2022. That could also mean an easier path to homeownership for many prospective buyers.

So, buying your first or your next home may have just gotten much easier (less stringent qualifying standards) and less expensive (possibly lower mortgage rate).

Looking for more information? Please check out the links below.

  1. To get more information on the new FHFA Conforming Loan Limits, click here.
  2. To get more information on the new FHA Conforming Loan Limits, click here

Or connect with us at 508-360-5664 or msennott@todayrealestate.com. We can put you in touch with one of the several of the highly qualified mortgage lenders we work with.


A quick shout out to our colleagues at the Sandwich Office of Today Real Estate who helped fill a basket and more with home goods in support of the Cape Cod and Islands Board of Realtors’ “Welcome Home” Gift Basket Drive benefitting the Housing Assistance Corporation. Often when individuals and families move into HAC properties they don’t have some of the basics. These “baskets” get them started.

Have a great week…

Mari and Hank