As the dust is settling from the last set of rule changes in October, a more significant set of changes took effect yesterday. The overall impact that they will have is still being speculated by economists all over the country. Every lender has been scrambling to put together new processes and strategies for implementing their new guidelines. Lenders have been changing rates / policies daily so please bear in mind that their turnaround times will likely be a little slower with all banks for the short term.
Here are some of the most significant changes we have seen over the last few days:
- Some lenders have discontinued 30/35 year amortizations, refinances and rental purchases altogether
- Most lenders have started charging a higher rate for refinances, 30 year amortizations and rental purchases
- Some lenders have started doing risk based pricing where they require minimum credit scores to have access to certain products
- Most lenders are charging higher rates for consumers who are putting 20% or more down
- Most lenders have increased all of their mortgage rates across the board
- Some lenders are still using the contract rate to qualify however they are charging a higher rate in order to do so
Although the mortgage industry is changing rapidly, we are still able to get great rates and offer a wide variety of products.
If you have any questions or concerns, please do not hesitate to contact me.
www.christinebuemann.com
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