Archives for November 2014

Fannie Mae changes the rules on cash out mortgage loans

In December mortgage giant Fannie Mae will change the maximum loan to value ratio for cash out loans.  Currently the maximum loan to value ratio (LTV) for cash out mortgage loans is 85% however that will drop to 80% in December.  Not a big deal as very few people close a cash out loan above 80% anyway.  For adjustable rate mortgage loans the maximum LTV remains at 75%.

Mortgage Interest Rate News 11-20-2014

After hitting their 2014 lows in mid October; mortgage jumped higher for a brief period and recently have started to move back down.  Mortgage rates are still higher than mid-October; but not by much.  It’s good to see mortgage rates holding on to these lows considering the equity market has moved higher in November.  It’s difficult to say what will happen over the next 6 weeks however it does appear mortgage rates will continue to remain low provided the data continues to show low inflation risk and an average economic output.