Mortgage Applications Up 48%, It’s YOUR Turn!
Posted on | December 27, 2008 | 1 Comment
The moves made by the United States government to lower mortgage rates have been an initial success. Ultimately, the government hopes that lower mortgage rates will lead to more Americans buying and refinancing homes through mortgage lenders. This is exactly what happened last week as the Mortgage Bankers Association Refinance Index was up 63% while mortgage loan application volume spiked 48%. Now, it is YOUR turn to refinance, but there are some things you need to know first.
Unless you have a FICO score over 720 and at least 20% down, you will not get the low rates that the market is promising. Mortgage lenders have learned there lesson of giving risky borrowers a decent rate. They now know that they must select financially sound homeowners if they are going to run a fundamentally sound business. If your FICO score is below 720 and you do not have the 20% to put down, getting an extremely low rate is not going to happen for you and you might consider waiting for an even lower rate or an increase in your credit score.
Another issue that needs to be considered is time. All borrowers know how much time must be invested in getting a low rate. While it does help your bank account, you also need to consider how it will effect everything else in your life. If you are researching and visiting lenders two hours a day, five days a week, I would be willing to bet that your significant other will not be pleased with you. It is always wise to research financial decisions, especially a mortgage, but keep it into perspective and make sure to take time for yourself and others in your life.
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One Response to “Mortgage Applications Up 48%, It’s YOUR Turn!”
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December 28th, 2008 @ 7:10 am
Please get the facts right. I am a Realtor and most of my buyers are FHA buyers which requires only 2.25% down payment, (which will increase to 3.5% in January). Including down payment and closing cost, buyers only need 3% out of pocket expense, the rest can come from sellers help. The rate similiar to conventional financing. Scores can be in the low 600′s. Also, in my state of Delaware, we have special programs for first time home buyers and they can get in with $0 out of pocket. For those who are responsible with their money, this is a great time to buy a house!