How I help my clients keep their purchasing power even during increasing stress-test requirements!
If you know anybody doing a pre-approval and is looking to qualify for the largest amount possible, please have them speak with me to avoid qualifying at the increasing stress-test requirements.
Fixed mortgage rates have exploded over the last month and now the DREADED stress-test is rearing its ugly head and is once again decreasing borrowers’ purchasing capabilities.
Quick Recap: the stress-test requires a borrower to qualify for a mortgage using the benchmark rate of 5.25% or the mortgage rate + 2%, whichever is greater.
5-year fixed mortgage rates have increased by 0.75% in the last 2-months and range from 3.49% to 3.79%. If a borrower wants a 5-year fixed mortgage they must now qualify at a 5.49% – 5.79%.
A few ways for your clients to avoid decreasing their purchasing power is to get pre-approved for:
- A variable rate mortgage
- A shorter-term mortgage (3-years or less)
- Use a credit union that is not required to comply with the federal stress-test guidelines.
This is just one of the ways I help my clients navigate the mortgage process!