New mortgage rules going into effect on May 1st are going to make home loans even more expensive for those with good credit and reasonable down payments.
As housing costs increase, how can you avoid being one of the millions of victims that appear to be on the verge of losing their properties?
More Mortgage Rules, More Distress
The Federal Housing Finance Agency (FHFA) is instituting new mortgage rules on May 1st.
These changes focus on subsidizing home loan borrowers with the worst credit and lowest down payments. The highest risk borrowers. That is being done, by penalizing lower risk borrowers, who have made bigger down payments, and have managed their credit better, by charging them extra for loans.
A report by the Washington Times estimates this to be around an extra $40 a month for a borrower with a 680 credit score, taking out a $400k home loan.
This comes right as Bloomberg reports more homeowners are falling into foreclosure, more bank and debt issues are on the rise, and repo jobs seem to be booming as more consumers fall behind on debt like auto loans.
While giving more people a chance at affordable housing is a great thing, fueling a financial crisis with reckless lending to borrowers that already can’t maintain their bills seems more predatory to them. As well as leading to a situation when all taxpayers will have to find the largest bailout in US history.
Bracing For More Inflation
It clearly does not seem like a good time to buy or refinance a home anymore. There is still a long way to go down before hitting the bottom of the market, and returning to a reasonable borrowing experience.
In the meantime inflation continues to rage. With the cost of insurance, utilities, groceries and gas rising again.
This is all squeezing existing homeowners. Many of whom are already on the brink of losing everything. In fact, half of Americans recently responded to a survey saying that they expect to lose everything in this next recession.
There may not be a lot of help out there. Though you can still cut your annual expenses substantially, and free up a lot of extra cash to cover those rising expenses by appealing your property taxes.
Get in touch with Property Tax Adjusters, Ltd. today to find out how much you should be saving each year…