Mortgage Rule Changes: What Do They Mean?

Lets take a person earning $60,000, no debt and a credit score less than 680. Today this person could qualify for $353,000 in mortgage amount based on a 30 year amortization. After July 9, this same individual would be limited to $312,000 mortgage based on a 25 year amortization. Now lets take this same individual and suggest a credit score greater than 680. Today this person could qualify for $455,000 based on a 30 year amortization. After July 9, this same individual would be limited to $356,000 on a 25 year amortization. Aside from the obvious qualifying standpoint, limiting mortgage default insurance to homes under…