Mortgage Rates Fall But Then React to Good Employment News
December 7th, 2009 Categories: Mortgage Update
Mortgage rates are excellent right now and reached an almost all time low last week. Unexpected good news about revised unemployment rates moved the rates up slightly but 5 percent or below rates still offer an extraordinary opportunity for buyers.
Conventional, FHA and VA loans of $417,000 or less are all under 5 percent with 0 points; loans above $417k, up to $729,750 are 5% with 0 points.
The big news though is that as of the end of this week conventional loans of $417k or less will only allow for a debt to income ratio of 45 percent regardless of AUS (Automated Underwriting Systems) findings.
If the loan carries mortgage insurance it is a maximum 41 percent debt to income ratio. Some lenders have already moved to this maximum but everyone must be in compliance by the end of the week to align with Fannie Mae/Freddie Mac imposed changes.
For more click here. As always, thanks to Rob Clark, for the most up to date information.
Michael
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