Mortgage Updates

Well last week the government announced yet again that they are going to be making some changes this coming March 18th. A lot of my clients have been asking what these changes are and how they will be affected. In short here’s what we are looking at:

1. the maximum amortization is now 30 years on insured products having less than 20% down. For conventional mortgages 35 year amortization should continue to be available.

2. when refinancing your home, the limit has been lowered to 85% of the appraised value.(where it was 90%)

3. The government will no longer insurance lines of credit secured by homes (this rule will take affect on April 18th)

4. for purchases, people can continue to buy with as little as 5% down (self-employed individuals require 10% down)

Well that’s it for today folks. Stay warm out there!