Record Low Rates Difficult To Get With Tight Underwriting

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Real Estate Agent with Hileman Real Estate, Inc. MREC# 528882

 

Record Low Rates Difficult To Get With Tight Underwriting

The average rate for a 30-year fixed rate mortgage hit all-time record lows last month with rates being reported as low as 3.49 percent, more than a full point below the 4.55 percent average from a year ago at this time. While the historic rate means great things for affordability, it also appears to be historically difficult to qualify for these record low rates.

Record rates are a boon to buyers. The monthly payment on a $200,000 mortgage at the rate reported last month translates into a monthly principle and interest payment of $897 compared to $1,019 last year at this time. That is a savings of $122 per month and more than $13,000 over a 9-year period, the average tenure of a homeowner. That all sounds great, but the clutch of would-be buyers who qualify for these rates have tightened in recent years.

The current average credit scores on loans made by the FHA is 707, which is an improvement from 2011 when the rate averaged 709. However, the average score for a denied loan application was 669, well above the 656 average for loans originated back in 2001 and above to the 660 mark used by the Office of the Comptroller of the Currency to delineate prime loans.

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When you are ready to begin your home search in the Ocean City, MD area, feel free to call Sharon A. Curtiss, Associate Broker/Sales Manager with Hileman Real Estate, Inc. at c/p: 410-726-4260 or Office: 410-208-9200.

You can also visit my website at www.oc4shore.com to view other Buyer and Seller reports. I will happy to provide you with a free list of foreclosure properties in the area.

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Rainmaker
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Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Sharon-That's a good stat to know-FICO scores on denied loans. I know that's an average and individual criteria can have an affect, still a good benchmark to know.

Aug 18, 2012 07:57 AM #1
Rainmaker
390,136
Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL

Great post it pays to have all the information available for our buyer's in today's market. Thanks for sharing the mortgage information.

Aug 18, 2012 08:26 AM #2
Rainmaker
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John Pusa
Sellstate Pacific Realty - Glendale, CA
Your All Time Realtor With Exceptional Service

Sharon - Historic low interest rates helping people with good credit qualify for loans. Thanks for the information on record low rates difficult to get with tight underwriting.

Aug 18, 2012 10:51 AM #3
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Rainmaker
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Sharon Curtiss

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