Opening Doors for Homebuyers!

Opening Doors for Homebuyers!

The Federal Deposit Insurance Corporation is the first of six financial regulators to release the final version of the long-awaited qualified residential mortgage (QRM) rule. The National Association of Realtors applauds this action because it will make possible to incorporate rules that include a broad definition for Qualified Mortgage standards implemented earlier this year.

Got your House?

Got your House?

Under the QRM rule, loans are generally considered qualified if the borrower’s debt-to-income ratio is 43 percent, among other things and there is not onerous down payment requirement, as regulators had originally proposed.

The NAR strongly opposed earlier versions of the rule that included 20 and 30 percent down payment requirements, which would have denied millions of Americans access to the lowest-cost and safest mortgages

For lenders, having these two rules in alignment provides the clarity they’ve long been asking for, widening and deepening loan eligibility and availability, which has been one of the main stumbling blocks to increased home sales.

Homebuyers will have now more credit availability reflecting an increase in home purchases, and refis. Way to go!

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NOW is the time…Rates don’t wait!

If you have higher mortgage payments, now is the time to change it!  In recent years we have seen many changes in our national economy. We have seen cuts in interest rates given by the Federal Reserve cuts not seen for many years. imagesCA68GG1H

One situation that influenced home foreclosures for many homeowners were the high interest rates they were granted. These mortgage loans  were presented for a large number of months as a fixed payments and later converted into variable rates, causing a drastic financial instability in many homeowners facing now a new higher mortgage payment.

The HARP Refinance Program gives the Homeowners that have not been behind in the last 12 months, and can prove income under the new conditions and repayment capacity; the opportunity to refinance with low current interest rates. This means that you can refinance even if the actual mortgage balance is higher than the value of your property on the market today.  The HARP and FHA programs are the only programs that allow you to refinance under these terms.

Compare and discuss your options and determine if refinancing NOW is financially right for you. The essence of refinancing is to find the best fit and financial balance  for you and your family. Remember, an informed decision is the best guarantee!