There are 3 significant changes happening in the mortgage industry this month.
But don’t worry, we are here to guide you ahead smoothly.
Changes happen March 18, 2011 – Act Now!
Maximum Amortization for high-ratio loans has been reduced from 35 to 30 years. Your monthly payment will increase – hence reducing your buying power. The example below shows how this could mean a $50,000 reduction in buying power:
Interest Rate : 4.04
Amortization 35 Yr
Mortgage Amount $600000
Monthly Payment 2,658.96
Interest Rate : 4.04
Amortization 30 Yr
Mortgage Amount $600000
Monthly Payment 2,866.71
Changes happen March 18, 2011 – Act Now!
Maximum Loan to Value (LTV) for refinances has been reduced from 90%
from 85%. This means your Maximum Mortgage could be reduced.The example below shows how this could mean a $25,000 reduction in buying power:
Example 2
Refinances at 90%
Home Value of 500000
Maximum mortgage amount $450000
* plus high ratio insurance premium
Refinances at 85%
Home Value of 500000
Maximum mortgage amount $425000
* plus high ratio insurance premium
April 18, 2011
Elimination of government backing of insurance for Home Equity Lines of Credit.
Click here for more information.