gmhTODAY 18 gmhToday Feb March 2018 - Page 63

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