Now that Gay Marriage is Legal, What Does it Mean for the Mortgage Market?
More Same-Sex Couples will be House Hunting
Gay and lesbian real estate agents have been helping LGBT couples find and purchase their dream homes for years. Now that same-sex marriage is legal, many expect the number of gay and lesbian couples searching for a home to increase. Newlyweds may want to jettison everything from their single lives, including their individual homes, now that they can legally create a life together. This means that more houses are going to sell, and the number of mortgages is going to increase.
More Couples May Qualify for Mortgages
Some experts are going back and forth on this, but overall, most agree that married same-sex couples are likely to have a better chance at qualifying for a mortgage, which means lenders will be making more mortgages. This is because when married couples apply for a mortgage, they’re considered as one unit. The low income or bad credit of one can be counterbalanced by the higher income or better credit of the other. When two people apply for a mortgage jointly as individuals, this isn’t always the case. Of course, bad credit can still hurt a married couple, but it’s not necessarily going to deny them the mortgage.
The mortgage market can also expect to see a surge in refinancing soon. There are a couple of reasons that many predict this will happen. First, now that they’re married, many couples will want to jointly own their property and share the responsibility. This means putting both spouses on the mortgage, and that requires refinancing. Second, as mentioned above, as a married couple, they may have a chance of getting better mortgage terms than they would have or did have when applying jointly as individuals. Savvy newlyweds may be able to take advantage of lower interest rates and other savings by refinancing their home. What better way to start their married life together than by lowering their house payment?
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