As some of you have already heard, the government has announced changes in mortgage qualification.
In a nutshell, the following is how this will affect the consumer.
1. Refinances can now only go up to 90% of the value of your property, this obviously means that you cannot get at that extra 5% of equity. If you are carrying debt now and need to get at that equity to pay it down, you must act quickly as this change will be in effect starting April 19, 2010.
2. Rental properties can only be purchased with a minimum 20% down. You can now buy an investment property for as little as 5% down, again you would have to have a completed sale by April 19, 2010.
3. Consumers must now qualify using the 5 year rate. This means that even if you take shorter terms that have lower rates or variable mortgage, you must use the 5 year fixed discounted rate to qualify. This will make it harder for consumers to qualify for a mortgage, so if you fit in this category, we need to look at this now.For more information please visit http://www.elanarendell.com/
