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New Mortgage Rules

Blog by Paul Thomas, REALTOR | November 8th, 2017

New Mortgage rules coming January 1, 2018!

As of January 1, 2018 all borrowers will have to qualify at 2% above the current interest rate regardless of the amount of down payment you have.

What does this mean? Well, if you could qualify for a mortgage of $500,000 today at an interest rate of 3%, then using 5% as the interest rate your new qualification amount will be $407,000.  This is a reduction of 19%.

So, if you are considering buying in the next six months to a year, with a down payment of more than 20%, you may want to reconsider and “pull the trigger” now rather than wait. On the flip side if you are considering selling, now may also be the best time as there will be more active buyers between now and the end of the year.

Don’t wait.... call now!