Thursday, September 27, 2012
Wednesday, September 26, 2012
Mortgage rates have moved lower every day this week. Today's move was even more pronounced than yesterday's, carrying rates decisively into NEW all-time lows. Today's data and events during the domestic market session were of little concern to Secondary Mortgage Markets, which began the day in stronger territory thanks to the overnight sessions in Europe and Asia. From there, MBS (the "mortgage-backed-securities") that most directly influence rates) essentially held stead for the rest of the day, allowing lenders the ability to pass on more of the improvements.
The continued push into lifetime low territory lets us know that lenders are actually doing a fairly aggressive job of moving rates lower. Adding to that sense of aggressiveness is the fact that most lenders have priced in the recent increase to Guarantee Fees which equates roughly to .125% higher rates. For thefirst time ever, best-execution on 30yr Fixed Conventional Loans is 3.375% at a majority of Lenders, and even lower rates are viable choices at a few lenders for a few scenarios.
Check out these UNBELIEVABLE rates:
- 30YR FIXED - 3.375% - 3.5%
- FHA/VA - 3.25% - 3.5% (varies more between lenders than conventional 30yr Fixed)
- 15 YEAR FIXED - 2.75% - 2.875%%
- 5 YEAR ARMS - 2.625-3.25% depending on the lender
Friday, September 14, 2012
As you know, your credit score is that 3 digit number that determines a lot in your financial life, including whether you can buy that beautiful house you're drooling over. So how can you improve or keep your credit score high?
There are several factors that contribute to one's score. Here are 5 ways to improve your credit score now:
1) Have multiple types of Credit: Lenders want to see that you have a history of multiple types of credit. If you only have one credit card, open up another. If you're going to buy a car, don't pay cash but pay a good downpayment instead and get a loan. Your credit score will go up as you pay.
2) Pay down your debt: The more debt you have the riskier you appear to a lender. Paying down or paying off debt is a great way to make yourself more desirable for a home loan.
3) Be on time with every bill. Don't be late! You can set up automatic payments from your checking account to pay off your credit card each month, and get those miles you need for a trip to Italy!
4) Do NOT under any circumstances open new lines of credit, no matter how small, before you start looking for a home.
5) Build your credit history: Younger borrowers are always at a slight disadvantage because they have a shorter credit history. But the longer you have lines of credit open (never close a line of credit! Even if you don't use a card, just keep it open), the higher your score will be!