Where We're at Now

Let me take this opportunity to wish you and your family a Joyful Holiday Season and a Happy and Healthy New Year.

A lot has happened in the housing and finance markets over the past year. In addition to the chaos in the market the amount of conflicting information being distributed by the media is overwhelming. I want to give you a factual picture of the mortgage market as it currently exists. You will then be able to determine if there are opportunities that you should be taking advantage of.

The government intervention into the market is beginning to show progress in lowering mortgage rates. The standards being used to qualify for a mortgage are conservative and will continue to be so for the foreseeable future. Any applicant with less than sterling credit will see a pricing adjustment, increasing the financing costs. No longer will a lender extend credit to anyone who cannot document sufficient income or assets.

With the softening of housing prices, applicants are required to have a vested interest in the property they are looking to finance. This means that the maximum loan-to-values on all mortgages types have been reduced.

The mortgage rate reductions that we’re seeing are applicable to conforming loan amounts, that is mortgages that are less than the Fannie Mae limit of $417,000 for a one-family home. Mortgages greater than $417,000 but less than $625,500 are currently being priced 0.375% higher with even more restrictive underwriting standards. Mortgages above $625,500 are more expensive now than they have ever been.

If you’re interested in exploring what options you have available today, give me a call @ (516) 627-0800 or write an e-mail to Don@Shelter-Rock.com. We’ll discuss how the current market conditions can be used to your benefit. Have a recent mortgage statement available when you contact me. I’ll need information from that statement to accurately calculate any potential savings.