News: "Sellers Brace for New Mortgage Caps"

The Wall Street Journal reports new government regulation is soon ready to be enacted to lower mortgage caps, which means bad news for Sellers.  Three years ago the feds raised mortgage caps to $729,750, to help stimulate the economy and continue to encourage people to invest in the housing market.  However, new legislation wants to bring that number down saying the high cap is actually part of the problem and not the solution.  This is bad news for sellers because it means less people are going to be able to pull-out a large enough loan to pay for a home, which will lead to a drop in home sales.

This is not all bad news.  Yes, the feds are lowering the mortgage cap BUT it does not mean that that is the maximum amount of loans you may pull-out to make a deal.  There are other privatized loan, or second mortgages that allow you to receive the additional funding that you may need to purchase your new home.

For the entire story read HERE!