MARCH 2023

MORTGAGE AND REAL ESTATE NEWS

Mortgages-Getting a Valid Rate Quote Just became more difficult

Fannie Mae, the purchaser of the bulk of residential mortgages, now is adjusting the cost of your mortgage depending on your DEBT-TO-INCOME RATIO. If your debts exceed 40% of your income, you will pay more. This is in addition to requiring a higher credit score for the best rates ( Now 780+ is the top tier, not 740).

Real Estate. Buyers beware of potential increase in real estate taxes which could be huge.

The Pennsylvania Supreme Court recently tied 3-3 in a decision on whether school districts are permitted to appeal your tax assessment when you purchase a home. This leaves the lower court ruling to stand which permits this to occur. What this means to home buyers is that they should be prepared to pay higher taxes, potentially much higher, if the home is “assessed” substantially below the sale price. Current litigation regarding the Common Level Ratio which is being reduced from about 82% to 63% may offer some relief.