Finally, the maximum loan-to-value ratio is 80 percent for purchase mortgages, with no junior lien at closing; 75 percent on rate and term refinance loans; and 70 percent on cash-out refinance loans. We know that some have expressed anxiety that this narrow definition will result in many borrowers paying higher mortgage rates or being excluded from the credit markets.
To achieve these personal goals and to build financial security, you will need to understand the fundamentals of budgeting, banking, saving, and investment. It is also essential that you know how to use – properly and responsibly – the many types of credit that will be at your disposal, such as credit cards.