On the fence about buying a home? Might want to pick up the pace... Why getting a mortgage will be trickier and costlier in 2014 By AnnaMaria Andriotis Consumers shopping for a home might want to pick up the pace: Getting a mortgage will likely become more challenging and costly next year. Loan limits for popular mortgages are scheduled to drop in January, according to a Wall Street Journal report this week. The Federal Housing Finance Agency is planning to slash the maximum size of mortgages eligible to be backed by Fannie Mae and Freddie Mac, which currently run as high as $417,000 in most parts of the country and up to $625,500 in pricier cities, including New York and San Francisco. That same month, new mortgage rules by the Consumer Financial Protection Bureau go into effect, which restrict the types of mortgages lenders can provide. The changes could leave next year’s mortgage applicants with fewer and more expensive financing options to choose from than what’s currently available, experts say. ―If you’re comfortable with what you can get this year, lock it in,‖ says John Vogel, adjunct professor of real estate at the Tuck School of Business at Dartmouth College. ―Most rules that will come are in fact going to be less favorable to borrowers.‖
Posted on: Wed, 25 Sep 2013 02:00:01 +0000
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