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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.
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Mortgage Interest Rates*
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Rates as of Thursday, 10th September, 2009:
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Conforming
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APR
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Payment per
$1,000
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Jumbo
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APR
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Payment per
$1,000
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30-Yr. fixed
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5.000%
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5.131%
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$5.37
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5.375%
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5.465%
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$5.60
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15-Yr. fixed
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4.500%
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4.723%
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$7.65
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4.875%
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5.026%
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$7.84
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7-Yr. fixed ARM
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4.500%
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4.627%
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$5.07
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6.500%
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6.596%
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$6.32
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5-Yr. fixed ARM
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4.000%
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4.124%
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$4.77
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6.125%
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6.219%
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$6.08
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3-Yr. fixed ARM
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4.000%
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4.124%
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$4.77
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6.125%
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6.219%
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$6.08
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5-Yr. Interest Only
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4.000%
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4.124%
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$3.33
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5.375%
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5.465%
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$4.48
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FHA 30-year fixed
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5.000%
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5.131%
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$5.37
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5.250%
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5.339%
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$5.52
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*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
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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.
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Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037
© Copyright 2009. All About News, Inc.
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.
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.
Karl: I had the same response as Sandra. Rates are just so good right now! Hope you are selling lots of $$$$
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.