No Shirt, No Shoes, No Mortgage
It’s getting more and more difficult for would-be borrowers in the New York region to get a mortgage, according to an article in yesterday’s Times. Mortgage brokers say many lenders are refusing loans to applicants with credit scores that are below the 680-700 range. Stated-income loans, meanwhile, are basically history, and people with lower credit…
It’s getting more and more difficult for would-be borrowers in the New York region to get a mortgage, according to an article in yesterday’s Times. Mortgage brokers say many lenders are refusing loans to applicants with credit scores that are below the 680-700 range. Stated-income loans, meanwhile, are basically history, and people with lower credit scores have to pay much bigger down payments. To add insult to injury, loans are coming with more fees nowadays, especially for those with less-than-pristine credit. One financial analyst says loan applicants with credit scores below 720 and down payments of less than 40 percent face fees between .5 and .75 percent of the loan amount. Is all this a necessary correction, or has the pendulum swung too far in the other direction, making home ownership unattainable for a huge segment of the population?
Lenders Raise the Bar [NY Times]
Chart from The New York Times.
In typical banking fashion they’ll punish today’s borrower for getting yesterday’s hooked on crack. The horse is way out of the barn though and they’re going to eat billions. The problem is that they end up taking it back from different people than they gave it to.
9:53 you can get about 500,000 right now. You dont have enough cash
“I’m refinancing my house right now, and I’ve had two brokers tell me how difficult the marketplace is. But then when I went directly to a few different lenders and applied myself, I was offered terms that the brokers told me were no longer available.”
Shahn Andersen you have two sides to Mortgage lending, the retail and wholesale. Right now Banks are cutting out Mortgage Brokers and offering better deals (No Points, Free Closing costs etc.). That’s why the Mortgage Broker couldn’t find you a better deal.
The situation with Mortgage lending has been going on for the last 7 months. I know you find it hard to believe but, its a nightmare out there. No jumbos under 8%, 20% required on most Mortgages and strict lending guidelines.
If you believe the worse is over, you haven’t seen nothing yet! Remember the BOND market sets rates. The 10 Year Treasury is tied to 30 year Mortgage rates. Plus when the Bond market gets tried of the BS interest rates are going to the moon.
“other banks are still offering 5.625% on a Super Jumbo with a credit score underr 700 on a 5 year ARM. They also have 30 year rates in the mid 6’s.”
This statement shows the ignorance of people! Shahn Andersen if you look at the guidelines of this product, you will see a float cap of 5% and a reset schedule of every 6 months! Also you will have to “Buy Down” about 2 points to get this deal. They told you that crap to get you in the door. Last thing of you need a Arm to get in , you can’t afford the place!
“Did The What just shout himself out at 9:27? LOL.”
No dumbazz, I’m The What, I don’t have to “shout out to myself”.
The What (The party is getting started)
Someday this war is gonna end..
BTW What a wonderful economy 4.11 for Regular!
OK, my wife and I make a combined 200K. We have 100K in the bank. Our FICOs are both over 750.
Howzit lookin?
i’m self employed. it was hard as hell to get my last mortgage. i had to pay people to get things done, which isn’t in the legal realm.
Shanhn you can not get a 30 year fixed jumbo for that rate. No matter what sort of credit score you have. You are out of touch with reality
“The key is credit score folks if you have a 750 credit score, banks want to do business with you. The porblem is banks do not want to take a chance on an irresponsible person.”
No. You’re wrong. My spouse and I have credit scores well over 750 and enough cash in the bank to buy the $2M property we’re looking at outright. But it needs a construction loan because it can’t appraise as habitable and 3 different mortgage brokers couldn’t get one. So, it’s not just about the worthiness of the buyers. It’s about banks that have just removed many types of loans from their product line.
Did The What just shout himself out at 9:27? LOL.
It’s never been “easy and cheap” to get or refinance a mortgage in Brooklyn Guest 9:12, particularly since most of the mortgages have to be Jumbo mortgages, which have their own set of rules.
I’m refinancing my house right now, and I’ve had two brokers tell me how difficult the marketplace is. But then when I went directly to a few different lenders and applied myself, I was offered terms that the brokers told me were no longer available.
You can still get a rate and term refinance with a credit score under 680 on a jumbo loan. Some banks just don’t want the business, and so they offer options that expensive primarily so they don’t have to lend unless they are making a lot of money, other banks are still offering 5.625% on a Super Jumbo with a credit score underr 700 on a 5 year ARM. They also have 30 year rates in the mid 6’s.
It takes some effort to find a good bank to give a good loan now, but they are still out there.