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Scoring a Low Mortgage Rate
from:Today’s mortgage rates are at historically low levels. So, scoring a low mortgage rate when compared to other decades in recent history is not hard. The trouble comes in when you are trying to get the average low mortgage rate and your credit or finances keep lenders from offering you the going rate. Or, it could be that despite the going rate, you want something even lower. These are all reasonable scenarios and there are ways to work towards the mortgage rate that you envision.
Prepare Before You Apply
If you know that your credit is shaky, don’t bother to apply for a mortgage loan without first checking into your credit score. You can get your credit reports for free; however, you will have to pay to see your credit scores. You can use some of that payment to procure the services of a credit counseling agency that can recommend some strategies to help you fix your credit in preparation for applying for a home loan. Just be sure to check out the reputation of the counseling agency, as there are some agencies that are fraudulent.
There are also community services offered by state and local governmental agencies that can teach you how to start shaping up your finances to qualify for a good rate. They may have programs where you can even buy a house for less than 20% down payment and even some way to subsidize the mortgage rate, if you qualify based on income levels or special conditions. Check the website of the department of Housing and Urban Development (HUD) to see about the many different programs from FHA to VA and more.
Pay Down With Points
If you want a mortgage rate that is even lower than the one offered (and it’s pretty good as it is), you can still ask if you pay points to lower the rate. Points are 1% of the total value of the loan and paying more points can lower your rate on the life of the loan. Of course, this increases the money you need up front, but if you are shopping for a low mortgage rate, then this is a definite strategy.
Look at Unconventional Loans
This is where people in the housing bust got in trouble, but adjustable rate mortgages are still out there. Currently, the low mortgage rate offered by an adjustable rate mortgage (ARM) for a period of time is what influences people to get these types of mortgages. However, they do adjust and then the sticker shock can be substantial. So, when trying to get a low mortgage rate, make sure you understand whether it is for the life of the loan or a temporary period.
Mortgage Bankruptcy News
Bankruptcy Judge Gives ResCap OK To Stop Funding HELOCs - Wall Street Journal
Bankruptcy Judge Gives ResCap OK To Stop Funding HELOCs Wall Street Journal ResCap filed for Chapter 11 bankruptcy May 14 as it faced upcoming bond-related payments, loan maturities and mounting litigation over soured mortgage securities it sold to investors. It listed assets of $15.7 billion and liabilities of $15.3 billion ... |
Nationstar Mortgage Rises From Ashes Of Mortgage Mess - Investor's Business Daily
 Bloomberg | Nationstar Mortgage Rises From Ashes Of Mortgage Mess Investor's Business Daily But now, Nationstar is the top contender for a far bigger prize: $374 billion in mortgage servicing assets of Residential Capital, known as ResCap, which filed for bankruptcy earlier this month. ResCap is the mortgage unit of Ally Financial, ... Fortress Seeks Servicing Rights From $4 Trillion Sale: Mortgages |
Fewer in Region Filing for Bankruptcy - LoanSafe
Fewer in Region Filing for Bankruptcy LoanSafe In addition, the federal government is offering relief programs to people whose mortgage is upside down and behind in their mortgage and some mortgage companies are more understanding. “The mortgage companies are also more willing to do short sales on ... |
Bankruptcy Judge Gives ResCap Approval To Stop Funding HELOCs - Fox Business
Bankruptcy Judge Gives ResCap Approval To Stop Funding HELOCs Fox Business ResCap filed for Chapter 11 bankruptcy May 14 in Manhattan as it faced upcoming bond-related payments, loan maturities and mounting litigation over soured mortgage securities it sold to investors. It listed assets of $15.7 billion and liabilities of ... |
Residential Capital seeks Chapter 11 protection - Huffington Post
 New York Times | Residential Capital seeks Chapter 11 protection Huffington Post TOM KRISHER | May 14, 2012 03:29 PM EST | AP DETROIT — The US government is hoping that Monday's bankruptcy filing by Ally Financial Inc.'s troubled mortgage business will help the company repay its government bailout faster. Residential Capital LLC ... Ally Financial says its Residential Mortgage unit seeks Chapter 11 bankruptcy ... Ally aims to end mortgage woes with ResCap filing Ally Fincl: Rescap Mortgage Subsidiaries File Chapter 11 |