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.