DON'T WAIT! Convert that ARM NOW!
Here is Why!!!!
Starting after December 31st, all clients seeking a conventional mortgage will need to have a back end ratio of no more than 45% ratios. What this means is even if DO or LP, Fannie Mae and Freddie Mac's direct Approval systems, Approve the loan at a higher debt ratio in the system, borrowers will still NOT be allowed to exceed the max debt ratios of 45%. So far FHA and VA are not included within the new guidelines that I am aware of.
Simply, again GUIDELINES ARE GETTING TIGHTER and will probably continue on this trend! This will definitely eliminate borrowers who need to refinance from Interest only ARM loans, regular ARM loans or who previously went Stated. Furthermore, all the reason to ACT NOW if you need to convert your mortgage loan!
This is another great reason to covert that Adjustable Rate Mortgage in addition to declining values, uncertainty of mortgage rates, and worries of the economy with job cut backs and losses. Don't sit on the fence, and don't wait any longer!
To calculate your own debt ratios, take your total payments that report from the credit bureaus, on your credit report. This is generally your current auto loan payments, credit card payments, student loans, lines of credit, etc. Total the monthly payments and divide them by your monthly income.
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