The answer is yes. Rising borrowing costs are slowing the rate at which US homeowners are refinancing their homes or turning to home equity for cash. According to a recent report by the Mortgage Bankers Association, mortgage refinancing volume fell to its lowest point since December 2000. Refinancings now represent just 36% of all mortgage applications, the lowest share since September 2008.
As of the writing of this post, The average 30-year fixed mortgage rate is 4.71%, up from 4.70% last week. 15-year fixed mortgage rates decreased to 4.13% from 4.15% this week. A 760 credit score or higher generally will qualify you for the best mortgage rates. However, you don’t need excellent credit to qualify for a mortgage. It’s challenging but possible to get a mortgage with a credit score under 620.
If you pass the FICO score test and the lender says you are creditworthy, the next item you will be evaluated for is your “capacity.” Capacity means that based on the lender’s allowed maximum percentage debt to your gross income, less all of your other debt payments, how much do you have available for a housing payment? It also has to be stable income, such as your income per year for two years in a row.
Please call/email me with any questions you may have. Also, be sure to subscribe for future discussion on this site, as I try to answer your questions regarding real estate and mortgage-related issues.
No comments:
Post a Comment
I appreciate your comment, questions, and suggestion and will respond to all of them as best as possible.