Getting a Mortgage in Today’s Economy
Posted By Carolyn on June 25, 2009
Do you have decent credit (over a 620 credit score)? Do you have a job? Do you have a credit history free of recent bankruptcy? Do you have a few thousand dollars? Then chances are you can get a mortgage in today’s economy.
While credit has certainly tightened up in this market, there are still healthy & wealthy banks looking to do business with you. Most smaller, independently owned banks are very healthy & are actually having trouble making enough loans to fill their quota. In Cincinnati, you can bet Sharefax Credit Union or Center Bank of Milford would love to give you a mortgage if you meet the above criteria (full disclosure- I own stock at Center Bank).
Mortgage rates are climbing. Just last month it was possible to get a 4.5% fixed rate mortgage. Today, you’re lucky if you can get a 5.6% rate mortgage. If you think this is not a lot of money, think again. On a $200,000 house, you’ll be paying almost $200 more each month because of the example rate difference.
Of course 5.6% is still near historic low mortgage rates. However, with the amount of money currently being pumped into our economy, inflation, and therefore higher interest rates, are virtually inevitable.
If you’ve been waiting on the sidelines for the “bottom to drop” I would advise you to now jump in the pool while homeownership is still at its most affordable since 1990.
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WOW!!!!! that was just what i needed to know, helpfull and to the point, please keep up the great work and i will be back for more soon!
Our home business was really affected by the Economic recession, we have to cut jobs just to cover up our losses. fortunately, we have already recovered. :