New regulations were implemented on January 10, 2014 that limit consumer choices on what type of loan works for them or, in some cases, hurts consumers’ access to credit altogether. The rules are a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. In short, the Consumer Financial Protection Bureau will determine, on a one-size-fits-all scale, what is considered a “Qualified Mortgage.”
I am often asked by borrowers, “When does it make sense to refinance?” A common thought, which can be accu- rate or inaccurate, is that it makes sense to refinance when someone can lower their rate by one percent or more. In fact, there is a good deal more to the decision-making process than just a difference in rate.