W
Watch Out
for 2018
Changes
e are already a few months
into the New Year, and it
is always wise to look at the changes
that have happened in the Mortgage
space that can affect you, could affect
your family and your financial decisions
going forward. Here are just a few that
are some “hot buttons” for your review:
Financing Solar:
One of the most popular programs to
allow people to install solar systems
on their homes has been the PACE
program (Property Assessed Clean
Energy). The appeal has been the ability
to add solar with 100% financing
that is done through the property tax
assessment. Here is the issue: both
FHA and now Fannie Mae and Freddie
Mac have indicated they will not
insure loans with PACE financing, or
PACE must be paid in full for a client
to refinance (meaning they will not
allow the lien to subordinate to a new
first mortgage). While the reasons for
this are up for debate, make sure you
check all your options and talk to your
Mortgage Lender before finalizing
solar plans.
Home Equity Lines:
By Jayson Stebbins
Mortgage Professional
Jayson Stebbins is a 23-year veteran
of the Mortgage Banking industry
and an Accredited Mortgage
Professional through the Mortgage
Bankers Association. He grew up
in Morgan Hill and currently lives
in Gilroy. He is the local Branch
Manager of Guild Mortgage, a
56 year old Mortgage Banking
firm. His office is in Morgan Hill
and serves all of Santa Clara, San
Benito, and Monterey counties. You
can reach Jayson and his Team at
408-782-8800 or at jstebbins@
guildmortgage.net
As of this writing, the new Tax Bill
was signed into law. One of the unique
features of the bill is that Home Equity
Lines of Credit (HELOC’s) are no longer
considered tax deductible, meaning
you do not get credit for that mortgage
interest if you are itemizing. This may
push more people to do true “cash
out” refinances in order to keep their
mortgage interest deductions strong.
Interest rates:
No crystal ball here, just some
thoughts. There is talk that through
2018 the Fed will continue its quarterly
rate increases. That may or may not
impact mortgage rates. Based on
the 2017 year in review, rates were
higher at the end of 2017 than at the
beginning, and that is following the
same strategy.
Home values:
Most economists, both from the
Mortgage Banker side and the Real
Estate side, believe home values will
continue to go up in 2018. So if you
are in the market, or have been waiting
to get in, you might want to take that
into consideration as well.
One thing is for sure, the