Discover the latest 2024 conforming loan limits in Raleigh, North Carolina, expertly explained by Raleigh Mortgage Broker Logan Martini with the Martini Mortgage Group. This update, critical for anyone seeking a Raleigh home loan, signifies a significant increase in loan limits, empowering more Raleigh homebuyers.

With the new 2024 conforming loan limits, the potential for owning your dream home in Raleigh just got bigger.

Raleigh Mortgage Broker Logan Martini

Unlock Bigger Dreams with the 2024 Conforming Loan Limit Increase

The 2024 conforming loan limits for Raleigh, North Carolina, and every one of 100 counties in North Carolina, by the Federal Housing Finance Agency (FHFA) have been established. 2024 will bring a $40,350 increase in conforming loan limits for a one-unit property for one looking to secure a Raleigh mortgage.  The new 2024 conforming loan limits are as follows:

• One-Unit: $766,550
• Two-Unit: $981,500
• Three-Unit: $1,186,350
• Four-Unit: $1,474,400

These higher limits mean that you can now afford a more expensive home with a smaller down payment, increasing your buying power. This change is a game-changer not only for repeat homebuyers but also for first-time buyers in Raleigh. Now, a first-time homebuyer can purchase a home valued at more than $790,000 with just a 3% down payment and still obtain a conforming loan.

Understanding Conforming Loans

Conforming loans, guaranteed by Fannie Mae (a.k.a. Federal National Mortgage Association or FNMA) and Freddie Mac (a.k.a. Federal Home Loan Mortgage Corporation or FMCC), are the bedrock of the American dream of homeownership. Conforming loans adhere to specific guidelines set by these government-sponsored entities, ensuring a steady flow of funds and making home financing more accessible and affordable. They offer more favorable interest rates and terms than non-conforming loans, making homeownership attainable for more people.

NOTE: Raleigh home loans guaranteed by Fannie Mae or Freddie Mac are commonly referred to as conforming loans since they conform to the Fannie Mae and Freddie Mac guidelines. Conforming loans are also referred to as agency or conventional loans.

Why Do Conforming Loan Limits Change?

Post-2008’s Housing and Economic Recovery Act (HERA) requires annual adjustments to conforming loan limits based on the FHFA House Price Index. In North Carolina, and specifically in the Raleigh-Cary metro area, the latest data shows a significant year-over-year increase in home prices, thus influencing the new loan limits.

In the United States house prices rose 5.5% over the past year and rose 2.1% over the last quarter (i.e., Q3 2023). In the Raleigh – Cary, North Carolina metro, home values increased 4.0% year-over-year and 1.5% quarter to quarter. The Raleigh – Cary North Carolina metro area is ranked #69 of 100 top metros.

Connect with Logan Martini for Personalized Advice

Navigating the world of home loans and understanding the impact of new conforming loan limits is crucial. As a leading Raleigh Mortgage Broker, Logan Martini is available to answer your questions and guide you through the process. Whether you’re a first-time buyer or looking to upgrade, Logan Martini’s expertise in Raleigh home loans and understanding of conforming loan limits in Raleigh will be invaluable.

Contact Logan Martini today to explore how you can maximize these new opportunities.

Logan Martini

A Homebuyer Guide by Raleigh Mortgage Broker Logan Martini

In Raleigh, North Carolina, as in the rest of the state, the allure of homeownership extends far beyond the emotional satisfaction of having a place to call your own. A critical yet often overlooked aspect of this investment is the potential tax savings. Yes, when considering a Raleigh mortgage, it’s not just the apparent rate you need to consider, but the actual cost after tax benefits. This is where Raleigh mortgage broker Logan Martini and the Martini Mortgage Group step in, providing invaluable insights into understanding the real cost of your mortgage, factoring in these tax advantages.

The Hidden Financial Perk in Your Raleigh Mortgage

A common misconception among many Raleigh homebuyers is that the cost of borrowing is directly tied to their mortgage rate. However, when tax deductions come into play, the scenario changes significantly. The IRS allows homeowners who itemize deductions to write off the interest on mortgages up to $750,000 (see IRS Publication 936, Home Mortgage Interest Deduction). This provision can substantially reduce your effective borrowing costs.

The Logan Martini 3-Step Process on How to Calculate the After-Tax Interest Rate on a Raleigh Mortgage

Homeowners who itemize tax deductions can deduct the interest on up to $750,000 of mortgage balances used to buy, build, or improve a qualified home. To calculate the after-tax cost of your mortgage there are 2 things you will need; what is your marginal tax bracket based on how you file (i.e, Single filer or Married, filing jointly), and what is your current mortgage rate for your home or projected Raleigh mortgage rate for your future property. 

Step One: Your Marginal Tax Bracket

The first step is to determine your marginal tax bracket based on how you file. A marginal tax rate is the rate that applies to the last dollar of your taxable income. In other words, the highest bracket homebuyer’s income falls into. At the time of publication, there are seven federal income tax brackets for 2024.  The top tax rate is 37% for individual single taxpayers with incomes greater than $609,350 ($731,200 for married couples filing jointly). Step one to calculate the after-tax interest rate is to determine your marginal tax bracket.

Step Two: Your Mortgage Rate

What is your mortgage rate?  Specifically, the note rate of your mortgage, not the Annual Percentage Rate (APR).  

Step Three: After-Tax Mortgage Rate

Step three has three steps and will require some very simple math to be performed:

• express your tax bracket as a decimal
• subtract the decimal from the whole number 1
• multiple that number by the note rate of your mortgage or projected mortgage rate

For illustration purposes ONLY, let’s assume you are in a 24% tax bracket and your Raleigh mortgage rate is 6.5%.

First step: Express the tax bracket as decimal … for this example, we are assuming a 24% marginal tax bracket so in a decimal form that is expressed as 0.24

Second step: Subtract the decimal from the whole number one … for this example, we would take one minus the marginal tax bracket expressed as a decimal hence, 1 – 0.24 = 0.76

Third step: Multiple that number by the actual mortgage rate … for this example, we are using a mortgage rate of 6.5% so 6.5 x 0.76 = 4.94 

In this example, a 6.5% mortgage costs ONLY 4.94% after-tax for someone in a 24% tax bracket.

TL;DR (Too Long; Didn’t Read) by Logan Martini

Understanding the after-tax cost of your mortgage in Raleigh is vital in realizing the full extent of homeownership’s financial benefits. Logan Martini’s expert guidance can help you navigate this often-overlooked aspect of mortgage planning. By following these simple steps, you can uncover the true cost of your mortgage and potentially save a significant amount of money.

Want Help or to Learn More?

Are you interested in exploring how you can benefit from the after-tax advantages of your mortgage? Contact Raleigh mortgage broker Logan Martini with the Martini Mortgage Group today. Let him guide you through the financial aspects of homeownership and help you maximize your investment.

Logan Martini

PLEASE NOTE: THIS ARTICLE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX ADVISOR FOR SPECIFIC ADVICE PERTAINING TO YOUR SITUATION. FOR MORE INFORMATION ON ANY OF THESE ITEMS, PLEASE REFERENCE IRS PUBLICATION 936. Also, this article is not an offer or commitment to lend you money, and it is not an advertisement for a specific mortgage or a specific interest rate.

Exploring the Raleigh real estate market reveals a world of opportunities, particularly for homebuyers navigating the complexities of today’s national housing trends. While Raleigh’s market is part of a broader national picture, it stands out with its unique characteristics and prospects.

Nationally, the real estate market is a hive of activity. Recent statistics highlight that approximately 8 homes are sold every minute, every day across the country. This national trend provides a backdrop to the bustling Raleigh market, where the demand for homes continues to surge, driven by both local dynamics and broader economic factors.

Higher Raleigh Mortgage Rates & Home Values

The current landscape, characterized by higher mortgage rates and rising home prices, presents a dual challenge and opportunity. In Raleigh, these national trends translate into a competitive but rewarding market for those who navigate it with insight. The Martini Mortgage Group, a cornerstone in the Raleigh mortgage sector, is dedicated to guiding homebuyers through this intricate market.

As expert Raleigh mortgage brokers and lenders, we’re here to help you understand and leverage these trends for your homebuying success.

Raleigh Mortgage Broker Logan Martini

The National Association of Realtors recent forecast adds another layer of anticipation. With a projected 15% increase in existing home sales in 2024 and mortgage rates expected to stabilize between 6-7%, the national market, including Raleigh, is gearing up for heightened activity. This means the opportunity window for purchasing homes in Raleigh is widening, mirroring the national momentum.

At the Martini Mortgage Group, we understand that each homebuyer’s journey is unique, especially in a market influenced by national trends. Whether you’re a first-time buyer or looking to expand your real estate holdings in Raleigh, our team offers personalized advice and mortgage solutions. We’re committed to helping you find the best path to homeownership, keeping in mind both Raleigh’s local market nuances and the broader national context.

Raleigh Mortgage Broker Logan Martini

As Raleigh’s trusted mortgage lender and broker, the Martini Mortgage Group invites you to explore the vibrant Raleigh real estate landscape. With our expertise in Raleigh mortgage rates and market trends, we’re here to support your aspirations of homeownership. Let us help you turn the challenges of today’s market into your homebuying success story.

Martini Mortgage Group Bottom Line

This year alone, the market is poised to see about 3.96 million homes change hands. This translates to an impressive 10,849 homes per day, 452 homes every hour, and roughly 8 homes every minute. While the cost of entering the market might be higher, the flow of buyers and sellers remains uninterrupted, underscoring the need for trusted advisors in this sector.

Here’s the pivotal aspect – the increasing difficulty in buying or selling homes is not merely an obstacle; it’s an opportunity, especially for discerning buyers. It’s these challenges that open up unique avenues for building substantial wealth in real estate. We are currently in one of these critical moments, a time rich with possibilities for those who understand and navigate the market’s intricacies.

Embrace the opportunities in the Raleigh real estate market with the Martini Mortgage Group by your side. Reach out to us today, and let’s embark on a journey towards finding your perfect home in Raleigh, in sync with the promising national market trends.

Logan Martini