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Clock Running Out on 35-year Amortizations

Hourglass and house real estate conceptIn less than 20 business days, 35-year amortizations and 90% loan-to-value refinances will disappear from the high-ratio insured mortgage market. (See: New Mortgage Rules Now Official.)

Well-qualified borrowers will then notice a big jump in mortgage rates for high-ratio 35-year amz and 90% LTV refis. That’s because they’ll only be available on pricey uninsured mortgages after March 17.

If you’re thinking of applying for either of the above, do it soon to ensure you’ve got a firm lender (and insurer) approval before the deadline.

Remember, if you want to refinance a prime mortgage to 90% LTV and/or get a high-ratio 35-year amortization, you need a written commitment from a lender by March 17.

If you’re purchasing, you also need a signed purchase agreement dated before March 18.

Different lenders may have different policies so ask your mortgage advisor for details.

Rob McLister, CMT