Real Estate News: New Financial Reform Will Impact You

City of Hialeah - Miami Dade County

The fifth largest city in the State of Florida with an area of 20 sq. miles and a Class 1 Fire Department. Hialeah has access to most major thoroughfare - linked by I-95, I-75, the Palmetto and Sawgrass Expressways, and the Florida Turnpike. It is home to Hialeah Race Track and rich with investment opportunities for apts, homeownership, retail and the manufacturing sector. Mayor Julio Robaina serves as strong mayor. His vision to encourage business growth and quality of life for the residents maintains the City of Hialeah as one of the most desirable and stable community in Miami Dade County. See all the details at www.hialeahfl.gov

7/19/2010

New Financial Reform Will Impact You

The new financial reform law that was just enacted is massive and two of its main components could negatively impact buyers in the future.

It will be harder to qualify for a mortgage and even when the economy improves lenders will find it difficult to loosen their guidelines. The new law requires lenders to document a borrower's income but currently has no specific guidelines for the terms under which loans can be made. This uncertainty will cause the lenders to tighten their guidelines in order to stay in compliance with the law.

Mortgage rates will increase as two sections of the law are implemented. The law requires lenders to keep a 5% stake in the mortgages they originate unless the loans meet a certain criteria. This will cause anyone with less than perfect credit and excellent present economic position will be paying higher rates.
The Fannie Mae and Freddie Mac future is still uncertain. Depending on when and how this issue gets resolve will affect how high the mortgage rates could end up.

Now more than ever is time to purchase your home.