Mortgage News You Can Use

What do mortgage lenders require today? Mortgage lenders require the same things they have required for years. For example a two year residence, income history and employment is a goal but not a requirement. A person who will be approved quickly is one with high credit scores, low debt ratios, savings and stability in employment and residence. A more difficult approval would be someone with a high debt ratio or long employment gaps.

A combination of equity, income and assets is the ideal mix for underwriting. You are more likely to be approved with $50,000 in a 401k than $100 in checking. You are more likely to be approved with 10% down than 5%. You are more likely to be approved with 750 credit scores than 650. The best way to position yourself for a fast approval is pay down debt, continue or start a systematic savings plan and pay all your bills before their due dates. This will almost guarantee approval.

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Mortgage News You Can Use

Mortgage rates are tied to the trading of mortgage backed securities or MBS which are pools of mortgages. However, since May 21st the 10 year bond yield has shot up from about 3.3% to 3.9% and 30 year fixed mortgage rates rose similarly during this same time period. Today is an auction of 10 year Treasury notes. Demand, if weak will cause mortgage rates to rise again today. Last Wednesday a 30 year mortgage was available at 5.0% for credit worthy borrowers. Today the rate is almost a full point higher. Always consult a trusted mortgage advisor when purchasing or refinancing a home.

Mortgage News You Can Use

Rate watchers await the Federal Reserve decision Wednesday on the future direction of interest rates. Traders expect a one half to full point cut. Mortgage rates rose Tuesday in anticipation of the cut. Mortgage rates are not tied to the Federal Reserve.

Gas sold for as low as $2.29 a gallon cash only today in Milwaukee. An encouraging sign. Also encouraging was the 889 rise in the DOW yesterday, the second largest one day gain ever.

A new President will be picked November 4th and take office in January 2009. Lots of change is happening and will continue. The only constant is change.