24 January 2011
No change of TDS limits is considered to be one of the main reasons for that.
• There will be less HELOC rate discounts at the market, because its costs will increase.
• There will be more high-interest uninsured second mortgage offers from private lenders (even with 90% LTV).
• In case the amortization changes provoke home prices decline, the default risk will increase. In addition to it, we may see more negative equity situations among low-equity borrowers.
Of course, these are just forecasts and they can change any time. So it’s always necessary to consult a professional mortgage broker before making any serious decisions.