First on the list is QM of course. People might not be able to qualify for as much as they used to. There are going to be fewer loan options available to them as well since many lenders simply won’t offer programs that don’t fit the safest aspects of QM.
Then there are increased Loan Level Price adjustments. These are adjustments in pricing on a buyers loan based on their profile. Things like their credit score, loan to value and property type already impact the pricing on a loan, but this year they’re going up.
How about the “g-fee” increase? This is how the GSE’s make money. They increase them to make more money and supposedly encourage private capital into the market. When the g-fee increases, it makes it down the the rate sheet and your buyer pay more. Well, we have a new FHFA Director coming in, Mel Watt, and he’s temporarily put a hold on these increases until he can see why their being bumped. For now it’s slowed down, but you can expect them to rise.
And finally insurance. FHA mortgage insurance is expected to rise, especially if there’s another FHA bailout. Flood insurance is off the charts higher in some areas due to the Biggert-Waters Act and FEMA’s rezoning of many flood zone areas. But the one insurance that’s not going up is PMI. Private mortgage insurance is getting a little better with decreasing foreclosure activity.
So there’s a snapshot for you.
(Author: Frank Garay and Brian Stevens – http://thenationalrealestatepost.com/snapshot-of-2014-changes/)
Comment from Beth Blevins:
Call me to find out how you can structure your mortgage to buy more house – especially important in light of the new mortgage rules. It’s only going to get more expensive as time marches on – so – act now and save $$. Call me direct at 980-521-4000.