Low Mortgage Rates Drop More as Home Buying Becomes More Appealing
by admin ~ March 19th, 2009.Certain lending banks are advertising 5.5% fixed, 30-year FHA mortgage rates, Quinn says, but obtaining one may be a little like trying to secure an invitation to dine with the Queen of England. Requirements: a mortgage of $417,000 or less; 20% down; a FICO score of at least 730-750 out of 850; a low debt/income ratio; a reliable income (ex-bonus) confirmed by tax returns; and a prospective home in an area where prices have stabilized. Miss one criterion, and your interest rate rises; several, and your mortgage application is likely to fail.
Fed Buys Up Mortgage Debt and Interest Rates Drop
Once you’ve been approved, Bryant also recommends locking in an interest rate for the length of time it takes the loan to close: don’t accept a verbal lock get it in writing, as rates can change as much as a quarter point or more in a single day.
Housing/Economic Analysis: Is it better to go for that low-mortgage rate now? Excluding those who have found their dream homes and can’t wait, unless home prices in your market have stabilized — i.e. they’ve risen or haven’t declined for three straight months or longer — on a total cost basis, potential home buyers would be better off waiting. Mortgage interest rates could rise, but this cost in most cases will be offset by another 10%, 20% or even larger, expected decline in median home prices in many markets Read the rest of the article >
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