Low Mortgage Rates Confront High Anxiety, Low Appreciation Expectations
Low Mortgage Rates Hold for Now
Low Mortgage Rates hold for now. It’s been a long time since buyers of homes were comforted by the near certainty that rapid appreciation of their home would protect them from any errors in judgment. With more people getting serious about buying homes as low mortgage rates hold for now it’s only prudent to know that these low mortgage rates are only applied to the fully prepared.
Are you Fully Prepared for Low Mortgage Rates?
With low mortgage rates at historic lows, lenders seem to tighten up their standards by the day. The result is a shrinking pool of eligible buyers that grows ever older and whiter by the day. With the nation suffering from high debt to credit ratios, lenders are insisting on compensating factors that few can offer. The most notable of these factors is a higher rate of savings.
Larger Down Payments, Higher Credit Score Equals Low Mortgage Rates
As always, a bigger down payment will cover a multitude of sins. But the national rate of personal savings is only 5 percent! To restate the obvious you must go through your credit reports with a ine tooth comb to remove errors. You must settle old bills in exchange for deletion of the record. You mus pay down your credit cards to improve your debt to available credit ratio before applying for the Mortgage. Improving your debt to available credit ratio by paying down debts is your best short term method of improvement!
Low Mortgage Rates Don’t Mean Certain Appreciation
Surveys are still showing the median expectation for home appreciation is still very low. In 2005, near the end of the bubble, that expectation was 7%!
Low Mortgage Rates, Shrinking Inventory
No one with any common sense will say that housing’s troubles are over. Much of the low hanging fruit has worked its way through the system and inventories of available houses are shrinking in some areas. It seems a prudent time to buy if your situation warrants it. Shop carefully and remember…
The future holds no guarantees.
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