Listed below are the 3 changes which take effect in March/April:
1. Home buyers (and refinancers) will only be able to get a maximum 30 year amortization (down from 35 years) as of March 18th.
This simply means that home buyers who qualify to buy a home priced up to say $400,000 today will only qualify for about $375,000 for mortgage applications submitted on or after March 18th. Please note that they can still put a minimum of 5% down to buy a home if they wish – this rule has not changed.
2. Existing home owners will only be able to refinance their homes to a maximum of 85% of current value (rather than 90%) as of March 18th.
3. Mortgage default insurance will no longer be available for home equity lines of credit as of April 18th meaning that credit limits will likely be limited to 80% of current property value.