This week I’m going to give you a few new updates and changes in the mortgage world!
First – the Fed raised rates a .25% this week – this was expected and initially the reaction was positive. We’ll see how things go in the next few days. So don’t expect your rates to jump right away – most of the investors already had the .25% priced in. You will see increases on home equity lines of credit and credit cards.
Second – a couple weeks ago Fannie and Freddie announced increases to the conforming loan limits – as of Jan 1st, it’s 453,100. This week HUD announced the new limits for FHA loans with case numbers ordered as of Jan 1st. In the Minneapolis St Paul metro area, the new limit is $356,500. It had been $332,350 so this will help those buyers looking to use FHA financing in 2018.
Third – There are changes coming to student loan calculations! Freddie Mac is now going to allow lenders to use a payment of .5% instead of 1% on student loans that do not have payments on the credit report as long as they are not in deferment. This could help homebuyers qualify easier!
Fourth – MN Housing announced that if you are using a conventional Freddie Mac HFA loan, you can still get the grants into 2018, they have not given an end date yet. If you are using Fannie Mae’s program, you have to close by December 31, 2017.
Fifth – There are some tax changes that may affect you depending on what happens with the tax laws. Dakota County CDA announced that one of the plans would end the Mortgage Credit Certificate. It looks like the down payment assistance would continue.
As far as the potential tax changes, there is a lot of discussion out there, but until we see what version of the tax plan is passed, we won’t know the final affects to our taxes. Ultimately, they need to pass a law before we see any changes!
I’m sure there will be more changes coming in the next few weeks, but this gives you some information that may help you in the purchase of your new home next year!!! Have a great week!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
