Mortgage Rate Update

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Mortgage and Lending

Mortgage Rate Update
High Credit Score = Low Mortgage Rate

Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.

There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.

There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.

Mortgage Interest Rates*

Rates as of Thursday, 10th September, 2009:

 

Conforming

APR

Payment per
$1,000

Jumbo

APR

Payment per
$1,000

30-Yr. fixed

5.000%

5.131%

$5.37

5.375%

5.465%

$5.60

15-Yr. fixed

4.500%

4.723%

$7.65

4.875%

5.026%

$7.84

7-Yr. fixed ARM

4.500%

4.627%

$5.07

6.500%

6.596%

$6.32

5-Yr. fixed ARM

4.000%

4.124%

$4.77

6.125%

6.219%

$6.08

3-Yr. fixed ARM

4.000%

4.124%

$4.77

6.125%

6.219%

$6.08

5-Yr. Interest Only

4.000%

4.124%

$3.33

5.375%

5.465%

$4.48

FHA 30-year fixed

5.000%

5.131%

$5.37

5.250%

5.339%

$5.52

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl

Accredited Loan Consultant

Lincoln Mortgage Company

251 Bellevue Avenue, Suite 102

Hammonton, NJ 08037

609-878-7013

kpeidl@linc-mort.com

www.karlpeidl.com

 

Pennsylvania: Licensed by the PA Department of Banking as a First Mortgage Banker and licensed pursuant to the PA Secondary Mortgage Loan Act. New Jersey: Licensed by the N. J. Department of Banking and Insurance Maryland: Authorized Mortgage Lender by the State of Maryland Commissioner of Financial Regulation. Florida: Licensed Mortgage Lender by the Florida Office of Financial Regulation. Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.



Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

© Copyright 2009. All About News, Inc.

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Rainer
125,171
Sandra White
John L Scott Real Estate - Port Townsend, WA
Experienced Residential Resale Broker

Thanks for the interesting update, cannot believe what great interest rates....I would think that real estate would be just the best investment ever as a hedge against inflation. 

Sep 10, 2009 03:07 AM #1
Rainer
108,048
Karl Peidl
Moorestown, NJ
Accredited Loan Consultant

Thanks Sandra.  When it comes to real estate as an investment, now is definitely the time to " buy low".  The combination of low rates and decreased home values has created a great buying opportunity.

Sep 10, 2009 03:23 AM #2
Rainmaker
472,405
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

Karl: I had the same response as Sandra. Rates are just so good right now! Hope you are selling lots of $$$$

Sep 10, 2009 03:32 AM #3
Rainer
108,048
Karl Peidl
Moorestown, NJ
Accredited Loan Consultant

Hi Janice - I had 3 buyers place offers so far this week.  Hopefully business is picking up for you as well.  We need to get first time buyers under contract in the next 4 weeks to make sure they close in time to get the $8,000 tax credit.

Sep 10, 2009 03:38 AM #4
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Rainer
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Karl Peidl

Accredited Loan Consultant
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