Home Mortgage Credit Rates Go Up and Down
Whether you’re in the market for home mortgage credit to buy a home and take advantage of the first time homebuyer tax credit, or refinancing an existing mortgage, you may have been watching the mortgage interest rates go up and down over the past two weeks. For example, Wells Fargo home mortgage credit rates have been on a bit of a roller coaster ride with a 30-year fixed rate mortgage hitting as low as 4.75-percent and shooting as high as 5.15-percent—all over a two-week period. With a myriad of first time home buyers trying to take advantage of the first time homebuyer tax credit of $8,000 that is due to expire on April 30, 2010, many are looking to lock in the home mortgage credit rates now.
'''First Time Home Buyer Tax Credit'''
Be aware that if you are trying to take advantage of the first time home buyer credit, you need to be under contract for the purchase of the home by April 30, 2010. If you do not have a contract by April 30th, then you cannot qualify for the first time home buyer credit.
'''Where are the Interest Rates?'''
Currently, the 30-year fixed rate home mortgage credit rates are hovering around 4.95-percent. In order to qualify for an interest rate at this low rate, most lenders are requiring a credit score of at least 740. If your credit score is not this high, you still have options to obtain home mortgage credit, but it may be at a higher rate than the average 4.95-percent, where it currently sits. Check with a few different lenders to see what the rates are before committing to one lender or before locking in on an interest rate. It’s also important to remember that interest rates can change on a daily basis, so what you see today may be gone by tomorrow.
Labels: home mortgage credit
posted by Raissa @ 10:33 PM
3 Comments
3 Comments:
I definitely agree with you, Raisa. Mortgage rates are very unpredictable. It goes up and down, affected by different forces. Many are saying that it's driven by economic factors. When the economy is good, the tendency is that the mortgage rates go up. It is really like a wavy line - it goes up, then down, then back up gain, then back down again.
Credit rates actually go up and down depending on the financial situation of a certain area. These are determined by the Central Bank, which gives hints to the financing institutions about the flow of money in that area. If I’m not mistaken, peak seasons – the periods when people spend more than usual – can also be a factor in the change of credit rates.
The fact that mortgage rates are varying from time to time, a borrower must study a bit more about it so that he can have the loans in lower interest rates. By this time, he’ll be sure that he can pay the debts and might be eligible for a bigger loan. After all, there must be good timing on the mortgage so that it will benefit the borrower more than the lender.
[ Carmona Monrovia ]
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