| Many borrowers and mortgage professionals alike did | | | | may be loosening. Borrowers that were having |
| not expect guidelines to tighten as much as they did | | | | difficulty refinancing may soon find more financing |
| the past 3 years. Borrowers and their mortgage | | | | options as the mortgage industry levels out from its |
| professionals were expecting to refinance many | | | | reaction to irrational exuberance. |
| adjustable rate mortgages to fixed mortgage rates. | | | | Borrowers still interested in obtaining financing should |
| Several years ago guidelines were very loose and | | | | keep abreast of changes to the industry by contacting |
| almost anyone was able to qualify for a mortgage. | | | | their mortgage professionals on a regular basis. |
| Within the past few years guidelines have conversely | | | | Borrowers should also keep their financial information |
| changed and borrowers are finding it exceedingly | | | | on hand so that they can take advantage of any |
| more difficult to obtain financing. Borrowers in this | | | | positive changes available to them. |
| difficult situation are caught between rising monthly | | | | This information does not constitute financial, |
| payments and the inability to refinance. | | | | investment or tax advice. This information is for |
| Luckily, the pendulum swings both ways. Recently, | | | | general informational purposes only and does not |
| MGIC Mortgage insurance, a private mortgage | | | | attempt to give advice to your specific circumstances. |
| insurance company, lifted their DTI cap from 41% to | | | | You are advised to discuss your specific situation with |
| 45% for FICOs of 740 or higher. Although this is not a | | | | an independent financial adviser before making any |
| significant or sweeping change to guidelines across the | | | | decisions. |
| board, it is potentially a sign that mortgage guidelines | | | | |