Tag Archives: FHFA

December 2021 Financial Planning and Capital Market Review – By John Kvale CFA, CFP

Hello and Welcome to our December 2021 Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets thoughts and current events!

Hope you enjoy!

December 2021 Video

YouTube

Financial Planning Tip(s)

First In Back to Basics Series – “The Emergency Fund”

In the inaugural post of a neat (well we think so) new idea, here in our Back to Basics series we discuss the all important Emergency fund.

This series is a review of the basics, and will serve as somewhat of a semester study of the Financial Planning foundations all the way to more advanced topics later in the series…. We plan on a mid month release of each part and somewhere south of double digit parts…. possibly with a video added to each for additional insights…. thanks in advance for sharing with those who may find this series helpful….

With the FOMC holding rates low currently, we remind that the Emergency fund is NOT investment funds, and as such may earn little if any interest in the current environment…. but that is ok, it needs to be safe, safe safe and very liquid!

We also discuss the size of the Emergency fund, depending on your situation!

FHFA Raises Conforming Mortgage Loan Amount

This post came to us due to the much larger than normal increase in the confirming (non-jumbo) loan increase amount. We have spoken at length on inflationary increases in a variety of assets, this includes homes and this much larger than normal increase in the non-jumbo Mortgage amount to $647,200 will be helpful in allowing more entry to many into the Residential Housing market, here is the actual article. and here is the link to the FHFA announcement…..

Capital Market Comments

Interest Rates and the FOMC – On Two Different Pages at Time of Post

With such importance on interest rates, the possible raising of the rates and the FOMC’s (Federal Open Market Committee) adjustment of rates…..

This post on FOMC’s rate increases, versus what the Markets are pricing in, was at the time very different. With Markets pricing in an increase in mid year of about 20% and AT THE TIME FOMC members saying a late 2022 if at all increase.

Fast forward to today and both the markets and the FOMC are saying a 60% increases in the Fed funds rate around March may be in the cards…. hmmmm

Have a Great Day, Talk to You at the End of January!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Financial Bottleneck Update – Getting Worse, Do Not Procrastinate …. FHFA Conforming Home Loan Adjustment New Amount …. 18% Increase to $647,200 … Wow … Compared to 2020 Increase of 7.5% …. Inflation? … Maybe … Friday

Warning: Financial Bottlenecks are ….. well getting MORE bottlenecked

Do not procrastinate on transactions, especially ones planned, like donations, tax issues, account adjustments or necessary known in advance needed movement of money…

Do it now and avoid the stress if at all possible!

Ok, back to our regularly scheduled, a bit heavy Friday Post: FHFA Stunning Value Increase

A conforming or NON-jumbo Mortgage loan tends to have easier qualification terms, lower rates and lower down payment options … Of course each situation is different, but just on the normal margin, the preceding tends to be true…

FHFA Ups new confirming amount by 18% .. Wow

Earlier this week the FHFA here in this announcement, made the large increase announcement…

On a side note, just really enjoy the connections of the dots via our Government Agencies…OK, Digressing…

FOR IMMEDIATE RELEASE 11/30/2021

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the conforming loan limits (CLLs) for mortgages to be acquired by Fannie Mae and Freddie Mac (the Enterprises) in 2022. In most of the U.S., the 2022 CLL for one-unit properties will be $647,200, an increase of $98,950 from $548,250 in 2021. 

Prior Year Release of 7.5%

Fannie Mae and Freddie Mac Baseline Limit Will Increase to $548,250

FOR IMMEDIATE RELEASE11/24/2020

​Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2021.  In most of the U.S., the 2021 maximum conforming loan limit (CLL) for one-unit properties will be $548,250, an increase from $510,400 in 2020. 

Some takeaways:

  • Great for homeowners as they fight higher prices
  • Especially for possible new young homeowners that would not have otherwise qualified
  • Inflationary?
  • Possible, another, not cheap asset class

Did not mean to get all heavy on a Friday, but thought it worth noting……

Have a Great Friday, Super Weekend and Talk Next Week!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents