Current Mortgage Rates are HOT!!
In case you haven’t been noticing the current mortgage rates are threatening their all time lows. While the current mortgage rates have been at historically low levels for the most part of 2009, they are seriously threatening to break through their lows into uncharted territories.
Although no one can 100% predict how low the current mortgage rates will eventually fall, I can guarantee they will not be at these levels forever. A 30 year fixed rate at 4.75% is not out of the question without paying any points. A 5/1 adjustable rate mortgage may be had without points for 3.625%
As you have probably noticed whether in the news or from someone you know who has applied for a mortgage, the guidelines keep getting tougher and tougher. Earlier this year you would have been able to get approved for a mortgage with a debt to income ratio of 64.99%.
The debt to income ratio or DTI as know within mortgage lingo is the percentage of your monthly debts to your income or your monthly debts divided by your gross monthly income. This past summer both agency’s Fannie Mae and Freddie Mac came out with stricter guidance associated with DTI’s further restricting the max allowable ratio’s to 55% in most cases. In other words if your DTI was greater than 55% you would not be approved for a mortage.
Continue to Part 2
<–>
Loading ...
RSS feed for comments on this post. TrackBack URL
Leave a comment