Have Mortgage Rates Bottomed Out?
Posted by Top Home Loans in Mortgage Rates on September 3, 2010
Recently mortgage fixed rates have dropped to levels that many would have never thought that we could reach. Mortgage interest rates generally stay a lot higher than where they are currently, but recently they have dropped to levels that are consistently low. This is due to extremely high levels of demand for bonds and bond equivalents.
But is this the market of the future?
Investors love security and they love solid returns on investments. Bonds are providing security, but they are not providing good returns for investors. Bond rates cannot stay low forever, and soon investors will move from bonds to equities. The more money that leaves bonds, the greater the rates will increase.
How long will we have low interest rates?
No one knows how long rates will stay low, but one thing is for sure: if mortgage rates go down, they will eventually go back up again. If you have a high mortgage interest rate, it is always a good idea to get something lower to protect your investment. Securing low rates is what everyone should be doing. If your mortgage rate is above a certain threshold, then it would be a good idea to lower your mortgage interest and get a good rate.
We can help with that.
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How does your Credit Rating Effect your Mortgage?
Posted by Top Home Loans in Credit Information, Mortgage Advice on September 3, 2010
If your a good credit user, then you should have a rough estimate of what your credit score is. For many, they do not know what their credit score is; however, it is critical that you know what yours is because it can make many differences on your mortgage.
All banks have credit requirements. If you are under a certain requirement on your credit report, then the bank will not even consider you. The bank will just automatically decline your mortgage with no questions asked. Banks with the best rate will require a higher threshold for the client’s credit bureau rating. If you have a bad credit score, then you can usually still get approved for a mortgage, but you will have to pay a premium on your interest rate.
Credit Scores can Impact Programs you Qualify for
For many borrowers, they want to be approved for their mortgage while providing as little documentation that is required. It is a hassle to look for old income documents that you may no longer have, so it is easier not to have to collect these documents. If you have a higher credit score, then the bank can sometimes waive this condition; however, if your credit score is very bad, then you will need to collect your income documents everytime that you apply for a mortgage. It is best to keep your credit in good standing to avoid extra work.
Getting Approved, and being Declined
Credit scores have the greatest impact on whether you will be approved or declined for your mortgage. If your credit score is too low, then you won’t be able to get approved anywhere. The higher your credit score, the more doors you will have open and available to get your mortgage approved.
Special Programs, What are they?
Many mortgage insurers have special programs that you may want to take advantage of. These programs can range from renovating your property to getting discounts on your mortgage insurance premium. You want to be able to get access to as many programs as possible, so make sure that your credit rating is very strong.
A strong credit rating is essential to getting a mortgage approved. It is also essential to getting the best mortgage rates. Make sure that you are constantly improving your credit score.
What is your credit score rating? How do you keep your credit score at the level it is at? Leave your response in the comments below.
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Double Dip Recession? Will it Happen?
Posted by Top Home Loans in Economy, Investing on September 2, 2010
Fear is the greatest way to manipulate mass groups of people, and the government has the ability to manipulate the public. The government can change consumer confidence, and they can promote growth or recession within the country. Unemployment, as a lagging indicator, has been on its way down signaling that a recovery has been proceeding in the recent months. Also, all key indicators have been positive. Not always as positive as they have been expected to be, but they have always been positive. There is great hope in the markets that we are on the economic road to recovery.
There are also negative aspects that must be considered. Some goods and services, including Canadian housing prices, have been overpriced, and these goods must fall in line before the recovery can proceed full. The amount of positive aspects greatly outweigh the negative aspects, so it is likely that we will see some volatility over the next several months, but a market crash is not something that is expected.
Will the Housing Market still experience a Pullback?
Even if the market and the economy does not experience a double dip, then can micro economies still pullback? The answer is yes; unfortunately, it looks like the pullback in the housing market is a definite reaction to what has been happening recently in the housing market. The only way for the market to resist a pullback is by keeping low interest rates, but mortgage rates have been low for such a long time that it is highly unlikely that these rates will be able to remain at this level.
If the Bank of Canada did keep mortgage interest rates at these lower levels, then it can only cause a repeat of the recession that we have already seen. The best remedy for the overpriced market is to allow for the prices to fall back in line and to keep growth steady. The goal of the market is to allow for consistent slow growth, and with too much volatility, this can cause major damage to investors and the market as a whole.
Do you think that there will be a double dip recession? When do you think that the stock market will decline again? Leave your response in the comments below.