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New Mortgage Rules Take Effect

January 30, 2014

Since the massive housing crisis struck several years ago, it’s been clear that mortgage policies weren’t quite working as they should. Legislators have put together new rules for how banks are allowed to lend money, in order to make sure that borrowers are able to repay their loans. The new rules take effect this year, and, whether you’re refinancing or purchasing a home this year, you’ll be able to notice some of the changes.

First, lots of risky loans are no longer available. This includes 40 year mortgages, interest-only loans, and no-documentation loans, but you shouldn’t see any real changes because these types of loans have (understandably) fallen out of favor with banks.

Other changes that you might note are the cap on how much commission the mortgage company can take on the loan and some new debt-to-income regulations to consider. Check out a full article about these changes over on Realtor.com, and speak with a qualified realtor today, if these changes concern you.

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