With the housing market's down, most homebuyers are finding it difficult to qualify for conventional loans. Find out what you need to know when applying for a mortgage. MORTGAGE TRENDS
APPLYING FOR A MORTGAGE NOW
- Rates down ½ % on 15 and 30-year fixed
- Rise in # of foreclosures. 900,000 now.
- Loss of 80,000 jobs in March
- Intro teaser rates for ARMs went up a few points.
- Home values have gone down; 2nd home values have gone down by almost 25%
- More money down
- Closing costs higher so banks can protect themselves
- Prepayment penalties higher
- Refinancing fees higher
- 2nd home market harder to get mortgage for
- Get good appraiser
- High credit scores-shop within 30 days to keep score higher
- Put more money down to avoid private mortgage insurance (PMI) and to get a lower rate
- Consider home equity lines can be used to pay for 2nd mortgage.
- Shop online within same day to compare rates
- Get written confirmation of a locked rate
- Recognize that mortgage brokers charge higher fees
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