Remember when mortgage rates were low... oh, wait they still are!!

Mortgage and Lending with Envision Mortgage Solutions

Picture of CurtWhether it's autumn or because the markets are beginning to recover a little from all the mortgage worries, I can't say...

What I can say is that it is possible to get a mortgage today with a rate that's less than 6%. No - it's not an adjustable rate either. That's less than 6% on 30 year fixed.

Just remember, your loan officer doesn't do this as charity work any more than the realtor or the lawyer, he/she has expenses and probably a family too, so yes, some how your loan officer does deserve to be paid for their work too.

There are a lot of factors that determine if this rate is available to you - none of which are under my control.

1st - Credit score, lenders really like stable people who have a long history of paying their bills on time, which is what your credit score is supposed to indicate. You'll need to be on the better side of 720.

2nd - Reserves, lenders really like knowing that you have enough money in savings, investments or in accessable funds in retirement to be able to pay your mortgage for at least 3 months and better still 6 months - just in case "Enron" happens to you.

3rd - Equity, Have you heard it said "it's easy to get a loan as long as you don't need it?" Lenders love lending to people who apparently don't need it or at least aren't desperate. Whether you are buying or refinancing, the amount of equity remaining after the new loan is in place relates to how risky the lender feels your loan is. Smaller amounts of equity are considered a greater risk of default.

4th - Stability, It may not seem fair but self employed people, even principals in multi million dollar partnerships get extra scrutiny when it comes to the mortgage process.

5th - Owner Occupation. In other words is it your house that you are going to live in as your primary residence. 2nd homes, vacation homes and investment properties do not qualify for the lowest rates.

Comments (1)

Martinelli Caputi
Martinelli Caputi & Associates, Ltd. - Warwick, RI
& Associates, Ltd.
Great title for a great post!  Thanks Curtis!
Oct 26, 2007 04:41 AM