The big question on everyone’s minds is “Where are interest rates going this year”. Of course there are no concrete answers only opinions and predictions. The opinions and predictions are just educated guesses at best; no one really knows for sure what is going to happen in the markets over the next 12 months as our crystal balls are broken.
What I do know is rates are excellent right now, so if you are waiting to refinance to lower your interest rate or term, or buy a home, now is the time to check out your mortgage options. If your interest rate is over 5% it may be worth checking with me to see if it makes good financial sense to refinance now.
January 10, 2014 new mortgage laws went into effect regarding allowed debt ratios and lower caps on fees allowed to be charged to the borrower. What this means for you is the debt to income ratios have been lowered on mortgages and have to be kept below 43% to 45% depending on the program and investor. The amount of fees Mortgage Brokers can charge has to be 3% or less of the loan amount as a general rule. Loan amounts under $100,000 may have different guidelines. Both of the new rules are very borrower friendly for instance you will not be approved for a loan if you do not qualify with the new debt to income ratios which should cut down on borrowers going into payment shock when they make their new payments on their new mortgages. Also, the new limits on fees will help the borrower from being over-charged on their new mortgages.
As always, please call me with any questions. I look forward to working with you in 2014. Call today 916-722-0395!
Kathleen Beck – Mortgage Lender
“A person you can count on”