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%.