March 11th, 2017 8:15 AM by Jackie A. Graves
Do you have the ability to repay a mortgage?
Naturally, any lender is going to ask that question and check to see if you
qualify for a mortgage. New mortgage regulations including the Qualified
Mortgage Rule and the Ability to Repay Rule make it tougher for lenders to give
Learn about the types of loans that are being
offered (or excluded) and how to make sure that you pass the Ability to Repay
Ability to Repay Rule – Less Choices
The Qualified Mortgage Rule (QMR) will go into
effect starting January 10th, 2014. Fannie Mae and Freddie Mac are already
getting prepared for the changes and are keeping lenders informed. One of the
main aspects of the QMR is the Ability to Repay Rule (ATR), which requires the
lender to verify that you, the borrower can make the required payments.
As part of the QMR these types of loans will
not be offered through Fannie Mae and Freddie Mac:
Loans with interest-only, balloon payments or
negative amortization payment schedules.
Ability To Repay rule – Reasons for Qualified
Making sure that you can repay a loan sounds
like a good idea for everybody. The lender wants to make sure that you can
repay the loan and you definitely don’t want to default on a loan. So why do we
need the ATR rule?
Here are some of the basic reasons:
Make Sure that You Can Repay Your Mortgage
Here are the steps you need to take to show
the lender that you have the ability to repay the mortgage.
By OneSmartPenny - To view the original
article click here