CarolinaMortgageConnection.com

This week Inside the Money:

• Freddie Mac announces Higher Costs for Mortgages
• Rates remained relatively level
• Subprime is making strides
• It’s still a great time to buy or refinance!

Freddie Mac announces Higher Costs for Mortgages

Freddie Mac announced that beginning March of 2008, it will impose “delivery fees” to lenders that write loans with credit scores below 680 and with loan to values over 70%. The fees will range from 0.75% to 2% of the loan amount on a sliding scale of credit score ranges. No word yet as to the ability to “roll” these fees into closing costs, or if the lender itself will just charge a higher rate to provide greater yeild to pay this fee. We will see as we get closer.

Rates remained relatively level

Rates over the past week have held fairly steady. The average 30 year fixed mortgages were hanging in the low to mid 6% range (including FHA). With recent announcements of Freddie Mac and Fannie Mae losses, one can only expect that these rates may begin to move upward soon, however I would expect it to be a gradual move if this happens.

Subprime is making strides

Believe it or not, the lenders still in the subprime market are beginning to make strides. Rates are falling, although very slowly. And credit score requirements are beginning to come back down. For a while you needed to have a 680 score to get 90% with many subprime lenders, and then you were looking in the 9-10% range with many of them. Pricing is slowly coming back and minimum scores are being lowered, however most subprime lenders are still shying off from 95-100% loans. There are a few, but most of these buyers can also qualify for a Fannie Mae type loan and save money there.

It’s still a great time to buy or refinance!

Even with the “mortgage crisis” and the tightening of liquidity in the market, rates are still near record lows and holding fairly steady. There are a ton of mortgage products for nearly any buyer, although those with major credit issues may need some work before buying. And home selection could not be better. For anyone thinking about buying a home, now is the time to make your move. Opportunity is knocking very loudly.. don’t ignore it!

For more information on mortgage and home financing, or for help in the Charlotte NC area, please contact Ed Nailor with 1st Metropolitan Mortgage- your Mortgage Loan Specialist.

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Ed Nailor
Home Loans in Charlotte

1st Metropolitan Mortgage
10801 Johnston Rd Suite 213
Charlotte, NC 28226

704-248-8694 Phone
visit http://carolinamortgageconnection.foundbydesign.net/

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