Comments on: Bad News Has Hidden Benefits for Mortgage Rates http://www.loanbiz.com/blog/2008/11/20/the-hidden-benefit-of-bad-news-for-mortgage-rates/ Loan Business News, Information, and Consumer Education Sun, 14 Mar 2010 04:55:14 +0000 http://wordpress.org/?v=2.3.2 By: S Landrum http://www.loanbiz.com/blog/2008/11/20/the-hidden-benefit-of-bad-news-for-mortgage-rates/#comment-3924 S Landrum Fri, 12 Dec 2008 22:53:10 +0000 http://www.loanbiz.com/blog/2008/11/20/the-hidden-benefit-of-bad-news-for-mortgage-rates/#comment-3924 Dear D. Hoff, Interest rates are great right now for home buyers and it is definitely a buyer's market. Also, there are some great tax incentives out there to encourage home buying on top of the interest write-offs you will have as a homeowner. It really is a great time for those who are interested in buying and have the resources. My suggestion is to talk to a reputable lender and get pre-qualified for a home loan. This way you will be prepared when you are ready to make a move. Make sure your loan officer is licensed and in good standing with the state you are in. Get referrals! Any loan officer you talk to needs to give you a Truth in Lending Disclosure and a Good Faith Estimate. This will give you all the details and cost of a mortgage. Also, with 30 year fixed rate interest rates at 5% or so I would seriously look at one of these versus a varible rate mortgage. Please write back if you have any questions. Sheryl Dear D. Hoff,

Interest rates are great right now for home buyers and it is definitely a buyer’s market. Also, there are some great tax incentives out there to encourage home buying on top of the interest write-offs you will have as a homeowner. It really is a great time for those who are interested in buying and have the resources.

My suggestion is to talk to a reputable lender and get pre-qualified for a home loan. This way you will be prepared when you are ready to make a move. Make sure your loan officer is licensed and in good standing with the state you are in. Get referrals!

Any loan officer you talk to needs to give you a Truth in Lending Disclosure and a Good Faith Estimate. This will give you all the details and cost of a mortgage. Also, with 30 year fixed rate interest rates at 5% or so I would seriously look at one of these versus a varible rate mortgage.

Please write back if you have any questions. Sheryl

]]> By: D. Hoff http://www.loanbiz.com/blog/2008/11/20/the-hidden-benefit-of-bad-news-for-mortgage-rates/#comment-3823 D. Hoff Wed, 10 Dec 2008 17:56:34 +0000 http://www.loanbiz.com/blog/2008/11/20/the-hidden-benefit-of-bad-news-for-mortgage-rates/#comment-3823 For the last six months I've been considering purchasing a home. I have a stable job and can afford a down payment of around $20,000, as well as mortgage payments of around $1,500. If you were in my position, would you go ahead and buy now or wait a while? Thanks! For the last six months I’ve been considering purchasing a home. I have a stable job and can afford a down payment of around $20,000, as well as mortgage payments of around $1,500. If you were in my position, would you go ahead and buy now or wait a while?

Thanks!

]]> By: S Landrum http://www.loanbiz.com/blog/2008/11/20/the-hidden-benefit-of-bad-news-for-mortgage-rates/#comment-3677 S Landrum Sat, 06 Dec 2008 16:19:48 +0000 http://www.loanbiz.com/blog/2008/11/20/the-hidden-benefit-of-bad-news-for-mortgage-rates/#comment-3677 While it is great news to have interest rates so low, it should be interesting to see how many of the actual refinance loans submitted recently will actually see fruition and/or see fruition at these low rates. I wonder if those who need interest rate relief the most will be able to take advantage of this? As home values decline, loan to value ratios increase for homeowners and many homeowners simply do not have at least 20% equity any more after seeing their home's value drop 25-35%. Low interest rates can become much higher after lenders start adding hits to the rate for higher LTV's. Remember, too, that we have reverted to traditional lending practices--without income and asset documentation to support a debt to income ratio of 40% or less, borrowers again can have a hard time qualifying for a good mortgage loan. While it is great news to have interest rates so low, it should be interesting to see how many of the actual refinance loans submitted recently will actually see fruition and/or see fruition at these low rates. I wonder if those who need interest rate relief the most will be able to take advantage of this?

As home values decline, loan to value ratios increase for homeowners and many homeowners simply do not have at least 20% equity any more after seeing their home’s value drop 25-35%. Low interest rates can become much higher after lenders start adding hits to the rate for higher LTV’s. Remember, too, that we have reverted to traditional lending practices–without income and asset documentation to support a debt to income ratio of 40% or less, borrowers again can have a hard time qualifying for a good mortgage loan.

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