Did you go under contract on your new home before April 30th? Are you nervous that you might miss out on the $8,000 tax credit? Not to fret, according to reports, congress has approved a bill that will extend the deadline to September 30th. So what’s does this mean to Utah home buyers--that you can breath a little easier.
There might be some bad news though for people looking to get a mortgage. If you have been watching the news; you’ll see that Congress is expected to vote on new rules that require financial institutions to guarantee that borrowers can afford to pay back their mortgages. Also, your lender will be required to inform you the ceiling you may pay on a ARM (adjustable rate mortgage). So when the interest rate changes, and it will, your payments will change.
That’s all well and good, but what’s it all mean for me. One thing is that it’s going to be more difficult to get a mortgage, plus it’s going to be a bit more expensive. This may sound bad but it is also a good thing. This is going to ensure that people don’t get into a mortgage that they can’t afford, and that they don’t foreclose on their home.
Rest easy my friends, harder work on taking out a loan just made you sleep easier at night knowing that you can afford the house that your turning into a home.