Rates for our ever-popular POV* took a beating today as most major Wholesale Lenders repriced for the worse twice today. Conforming rates ($417K and under) are at 5.25% with Jumbo Conforming (up to $729,750) at 5.625%. Super Jumbo (up to $2 million) for a five year fixed at 5.875%. You can always send your questions or scenarios to me at lololoans@yahoo.com
Reminder: on the 8% Tax Break: The First-Time Home Buyer Tax Credit as part of the American Recovery and Reinvestment Act of 2009 goes away as of 31 December of this year. You have to Close and be Funded on your Loan prior to that date. Click on the link to see if you qualify http://www.irs.gov/newsroom/article/0,,id=204671,00.html?portlet=7 So if you are "on the fence" as far as a home purchase this may be a factor.
Just who Qualifies for that Mortgage Loan? Remember that there are 3 major components to having the happy folks in Underwriting approve your Loan Application. Credit Score, your income and the equity involved in the property. The 3 components are inter-related and in some cases can be adjusted. For example if your income is a tad on the low side, you can up your chances with a higher FICO score and more equity in the home. Less equity, then a higher FICO score and more income etc..so on a Purchase Loan, the big change that you can control quickly is the Equity part of the triangle. If you have a fixed dollar amount set aside for the down payment, then going with a smaller home than you had wanted or planned on increases your Equity component and thus adds more "firepower" to your chances of getting approved. A reversal of the mindset of a few years ago when it was "think big" because..you could!
*POV = Plain, Old, Vanilla Home Loan: 30yr fixed, fully amortized, 20% equity min, Single Family residence, owner-occupied, rate and term refi or Purchase loan only, slightly better rates for being kind to animals and strangers.
Reminder: on the 8% Tax Break: The First-Time Home Buyer Tax Credit as part of the American Recovery and Reinvestment Act of 2009 goes away as of 31 December of this year. You have to Close and be Funded on your Loan prior to that date. Click on the link to see if you qualify http://www.irs.gov/newsroom/article/0,,id=204671,00.html?portlet=7 So if you are "on the fence" as far as a home purchase this may be a factor.
Just who Qualifies for that Mortgage Loan? Remember that there are 3 major components to having the happy folks in Underwriting approve your Loan Application. Credit Score, your income and the equity involved in the property. The 3 components are inter-related and in some cases can be adjusted. For example if your income is a tad on the low side, you can up your chances with a higher FICO score and more equity in the home. Less equity, then a higher FICO score and more income etc..so on a Purchase Loan, the big change that you can control quickly is the Equity part of the triangle. If you have a fixed dollar amount set aside for the down payment, then going with a smaller home than you had wanted or planned on increases your Equity component and thus adds more "firepower" to your chances of getting approved. A reversal of the mindset of a few years ago when it was "think big" because..you could!
*POV = Plain, Old, Vanilla Home Loan: 30yr fixed, fully amortized, 20% equity min, Single Family residence, owner-occupied, rate and term refi or Purchase loan only, slightly better rates for being kind to animals and strangers.
