Even though GSE and Federal Housing Administration (FHA) loan limits will decline to $625,500 at midnight Friday, borrowers with high balance FHA-insured loans can still refinance these products as long as they don't engage in a cash-out refinancing.

According to FHA guidance issued in August, which received scant attention in the media, that means during the fourth quarter a borrower with a $700,000 FHA-insured loan can refinance that balance to take advantage of low mortgage rates.

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