DU 7. Tip

Here are two more items I notice that have changed in regards to DU 7
1-The level of risk associated with each amortization type is as follows, starting with those loan types representing the least amount of risk:
• Fully amortizing fixed-rate mortgages;
• Fully amortizing five-year, seven-year, and ten-year adjustable-rate mortgages;
• Six-month, one-year, and three-year ARMs as well as fixed-rate interest-only mortgages; and
• Interest-only ARMs and balloon
2. DU will continue to use the amortization term of the loan in its risk assessment for fixed rate mortgages, but will no longer look at the loan term in combination with LTV.\

Shirley Nault has been a mortgage professional for over 20 years. Visit her other mortgage web sites go to www.naultfhatips.blogspot.com or www.mtgview.blogspot.com