Mortgage brokers who automatically turn down B Deals should think again. Due to new mortgage lending rules introduced over the last couple of years, guidelines are tighter and tighter. This could mean someone who originally was an A Deal, is now a B Deal. This basically means previously, they could fit into a prime lender such as a major bank or credit unions/mortgage lenders that are owned by these major banks. A B Deal would be a deal done with lenders such as Equitable/Home Trust, Xceed mortgage corporation, and MCAP ECLIPSE, just to name a few.
With B Deals, typically you will get higher rates since you do not qualify for a typical mortgage. These rates can vary anywhere between 3.29%-6% as of today’s date. Some of these strict guidelines include a maximum loan to value of 80% on refinances. Meaning you can only take out a maximum of 80% of your home’s equity. Another new rule would affect maximum amortization for purchases, maximum allotted would be 25 years. By doing this, it can really affect ones borrowing power.
When considering all these factors, B lenders are important in the mortgage world and we must embrace them as much as you would an A lender.
Contact Robert Clancy today to find out where your mortgage needs fit!