The new rules are intended to keep lenders from getting borrowers into mortgages they can’t afford. Unlike regular fixed-rate mortgages that have the same rate and monthly payment throughout the life of the loan, rates on ARMs change, which can lead to larger monthly payments that make it harder for a borrower to afford the loan.
Adjustable-rate mortgages face tougher rules
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The HELOC dam is opening. Are you ready?
U.S. homeowners are using HELOCs to access trillions in home equity amid rising interest rates. Mortgage originators should explore this area with innovative financing solutions like bank statement HELOCs.
