Home Loan Rates – find the latest interest rates here #canada #mortgage #rates


#latest mortgage rates

#

Last updated: 16 September 2016 10:00am

This table is updated regularly and is intended as a brief guide to residential loans on owner-occupied properties in New Zealand. Users are advised to confirm the rates and conditions that will apply in your particular situation directly with the lender.

Terms explained

Floating rate: also known as the variable rate. This fluctuates according to market conditions.
Fixed rate: this rate applies for the length of the loan, which is fixed for a set period. We have given a sample of fixed rate periods only: many lenders offer fixed rate loans for as little as six months, while some go out to seven years.
LVR: this stands for the loan to value ratio and is the maximum percentage of a property’s value that the institution will lend to. Check with the lender for any special conditions. Many, for example, may require you take out mortgage insurance if the LVR is over a certain level, or there may be other restrictions such as lending for apartments, which can be to a much lower LVR.
Front-end fees: these are also known as establishment, application or loan approval fees. They are are one-off charges by the lender for setting up the loan.
Capped rate: the maximum rate that will apply to a loan during its capped period. If the floating rate drops below the capped rate applicable then the lower floating rate will apply instead. There is no penalty for paying off lump sums, totally repaying the loan or for increasing your payments.

Disclaimer

Every possible effort has been made to keep the information in this table as accurate as possible, however, neither the publishers of Good Returns nor anyone engaged to compile this table accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers.


Mortgage Trends – Where Will Rates Go From Here #rate #mortgage


#mortgage trends

#

Mortgage Trends

Anyone who is considering the idea of purchasing a home these days will naturally try to fathom whatever direction the trends in mortgages may try and take. Tracking any sort of pattern in these tough economic times is difficult if not impossible. Along with the after-effects of a dismal housing market climate in general, potential home-buyers might just as well resort to a crystal ball or the roll of a dice to zero in on any accurate forecast. It is widely felt that mortgage rates should continue at or below 5% for a greater part of 2012, and perhaps for the whole year, which is simply an ongoing scenario seen in much of 2011 as well. The across-the-board interest rates for 30 year fixed mortgage rates hovered on the underside of 5% for the preceding year, though the 4% range became a reality for a while in the last quarter. Economists at organizations such as the Mortgage Bankers Association predict that these same mortgage rates will hold at the same level for 2012. In other words, unchanged.

Today s Mortgage Rates

When compared to rates over a longer historical period, there is no doubt that today’s mortgage interest rates are indeed at a notably low level. This is certainly a boon to any prospective homeowner planning to acquire a mortgage anytime in the upcoming year. The down-side of this is quite a few potential borrowers may have trouble qualifying for these low rates. This is simply because it is much more difficult to meet the newer and more rigorous credit standards as a result of the housing crisis in general. This factor is also expected to be a major characteristic of the ‘trend’ in mortgage rates for the coming year as well. Based on this outlook, prospective home-buyers with less-than-optimum credit standings. extreme levels of debt obligations, or even unpredictable employment security should undoubtedly have difficulty acquiring a housing loan during 2012 due to much more meticulous lending constraints and oversight.

Current Mortgage Requirements

The requirements a potential borrower will need to be eligible for a mortgage in 2012 will be quite detailed. They will need to be very thorough in providing sufficient background material. They should also be prepared to meet the more rigorous requirements of having credit ratings at a minimum of 600 or higher, depending on the lending institution. In addition, there will be greater scrutiny with regard to documented proof of employment steadiness and security as well as verifiable income levels. Debt obligation levels are required to fall within certain percentages in relation to a home-buyer total income.

The Reality of the Current Mortgage Environment

As an ongoing after-effect of the housing crisis of 2008, there will be fewer mortgaging options for home-buyers in the coming year, leaving the more ‘exotic’ type of lending methods a thing of the past. One form of collateral damage caused by the crisis has been the ‘stated income’ loans, which permitted potential buyers to rely on undocumented income statements to acquire loan approval. Likewise, the identical treatment will be extended toward ‘no-doc’ mortgages, where the lender will request far more detailed information regarding employment, income, assets, and debt standings than was required in the recent past. Piggy-back mortgages have also gone the way of the chopping block in many states, which were utilized when a borrower combined two mortgage loans to avoid paying the private mortgage insurance (PMI) requirements on the loan.

The potential home buyer looking to secure a mortgage loan needs to possess a good bit of insight and instinct to understand not only the trends in the local mortgage market, but those that affect the national mortgage market as well. Each of these have a direct impact on the prevailing interest rates. Careful and diligent research via numerous online sites should provide adequate information regarding the current mortgage trends and lending practices in a borrower’s desired market. No amount of investigation or thoughtful planning is wasted in this all-important milestone for acquiring the best possible mortgage at the most favorable rates.


Mortgage Trends – Where Will Rates Go From Here #canada #mortgage


#mortgage trends

#

Mortgage Trends

Anyone who is considering the idea of purchasing a home these days will naturally try to fathom whatever direction the trends in mortgages may try and take. Tracking any sort of pattern in these tough economic times is difficult if not impossible. Along with the after-effects of a dismal housing market climate in general, potential home-buyers might just as well resort to a crystal ball or the roll of a dice to zero in on any accurate forecast. It is widely felt that mortgage rates should continue at or below 5% for a greater part of 2012, and perhaps for the whole year, which is simply an ongoing scenario seen in much of 2011 as well. The across-the-board interest rates for 30 year fixed mortgage rates hovered on the underside of 5% for the preceding year, though the 4% range became a reality for a while in the last quarter. Economists at organizations such as the Mortgage Bankers Association predict that these same mortgage rates will hold at the same level for 2012. In other words, unchanged.

Today s Mortgage Rates

When compared to rates over a longer historical period, there is no doubt that today’s mortgage interest rates are indeed at a notably low level. This is certainly a boon to any prospective homeowner planning to acquire a mortgage anytime in the upcoming year. The down-side of this is quite a few potential borrowers may have trouble qualifying for these low rates. This is simply because it is much more difficult to meet the newer and more rigorous credit standards as a result of the housing crisis in general. This factor is also expected to be a major characteristic of the ‘trend’ in mortgage rates for the coming year as well. Based on this outlook, prospective home-buyers with less-than-optimum credit standings. extreme levels of debt obligations, or even unpredictable employment security should undoubtedly have difficulty acquiring a housing loan during 2012 due to much more meticulous lending constraints and oversight.

Current Mortgage Requirements

The requirements a potential borrower will need to be eligible for a mortgage in 2012 will be quite detailed. They will need to be very thorough in providing sufficient background material. They should also be prepared to meet the more rigorous requirements of having credit ratings at a minimum of 600 or higher, depending on the lending institution. In addition, there will be greater scrutiny with regard to documented proof of employment steadiness and security as well as verifiable income levels. Debt obligation levels are required to fall within certain percentages in relation to a home-buyer total income.

The Reality of the Current Mortgage Environment

As an ongoing after-effect of the housing crisis of 2008, there will be fewer mortgaging options for home-buyers in the coming year, leaving the more ‘exotic’ type of lending methods a thing of the past. One form of collateral damage caused by the crisis has been the ‘stated income’ loans, which permitted potential buyers to rely on undocumented income statements to acquire loan approval. Likewise, the identical treatment will be extended toward ‘no-doc’ mortgages, where the lender will request far more detailed information regarding employment, income, assets, and debt standings than was required in the recent past. Piggy-back mortgages have also gone the way of the chopping block in many states, which were utilized when a borrower combined two mortgage loans to avoid paying the private mortgage insurance (PMI) requirements on the loan.

The potential home buyer looking to secure a mortgage loan needs to possess a good bit of insight and instinct to understand not only the trends in the local mortgage market, but those that affect the national mortgage market as well. Each of these have a direct impact on the prevailing interest rates. Careful and diligent research via numerous online sites should provide adequate information regarding the current mortgage trends and lending practices in a borrower’s desired market. No amount of investigation or thoughtful planning is wasted in this all-important milestone for acquiring the best possible mortgage at the most favorable rates.


Here s the Average American s Mortgage Payment, by Age and Income – How Do


#monthly mortgage payment

#

Here s the Average American s Mortgage Payment, by Age and Income — How Do You Compare?

How much money does your family pay every month in mortgage-related expenses? Source: Mark Moz. via Flickr.

There is, perhaps, no bigger expense you will ever have than the purchase of your house. Along with saving for retirement, and a college education for your children, paying a mortgage has become one of the “Big Three” financial events in one’s life.

But how much are we actually spending on our mortgages, and does it make sense for the type of lives we lead?

Last month, the Bureau of Labor Statistics (BLS) released its Consumer Expenditure Survey for 2013. If you’ve ever bought a house, you know the monthly payment you make is actually more than just your mortgage. The regular price of being a homeowner also includes property taxes, the interest on your mortgage, several different types of insurance and — for the purposes of the data collected by the BLS — regular maintenance.

So, how much are average Americans paying for their mortgages? When we break it down by household income, here’s what the data says.

There are two important things to note, here.

The first is the percentage of pre-tax income that a household devotes to mortgage-related payments. With the exception of those earning between $80,000 and $100,000, each successive group — though it spends more on housing — is spending a smaller percentage of their income on their mortgage.

Second, it’s clear that this data isn’t perfect. Many may be wondering how a household earning under $40,000 per year could afford a home. While it’s certainly possible to own a home with that salary, the data is skewed, because it also includes retirees that already own their homes, and are able to live comfortably on far less than they may have been earning in their prime years.

To help get a little clarity, I also broke out the Average American’s mortgage payment by age as well.

There are, again, two key takeaways here. First, the bulk of first-time homebuyers are between the ages of 25 and 44. Once we eclipse the 44-year-old barrier, we starting seeing a reduction in mortgage payments.

That is due to a number of factors. First, some homeowners select a 15-year mortgage instead of a fixed, 30-year. Second, many who start with a 30-year fixed mortgage refinance to a 15-year mortgage once their salaries go up. And third, 30-year fixed mortgages allow for principal to be paid back early without a penalty.

More importantly, however, is what we see in the percent of income being devoted to mortgage payments. Although this percentage falls significantly from 25-year-olds all the way to 64-year-olds, it picks up again once folks enter their golden years.

This may go against conventional wisdom, as many have paid off their mortgages once they retire. But we often forget that property taxes and insurance still have to be paid indefinitely. Additionally, many of the fixes you may have made yourself in your younger years are now being contracted out to younger hands — and often at a premium.

At the same time, largely because of the poor record we Americans have at saving for retirement, the amount of income we have to fall back on in retirement is far less than we were earning during our working years.

The point is that it’s crucial for homeowners to take such costs — those that go beyond the mortgage principal and interest payments — into account when (1) buying their home, and (2) deciding whether or not to stay put when retirement time comes.

If you did a good job saving up in your younger years, this likely won’t be an issue. But for many Americans, there could sticker shock involved when taxes, insurance, and maintenance bills need to be paid on a house you own outright, while you’re bringing in less than you have since you were in your 20s.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .


Wastes Banned From The Trash #plumber #livermore #ca, #keywords #can #be #entered #here #if #needed.


#

Wastes Banned From the Trash

Many common products that we use in our daily lives contain potentially hazardous ingredients and require special care when disposed of. It is illegal to dispose of hazardous waste in the garbage, down storm drains, or onto the ground. Chemicals in illegally disposed hazardous waste can be released into the environment and contaminate our air, water, and possibly the food we eat. And by throwing hazardous waste in the garbage, you can cause additional hazards to your garbage handler.

Regulations to protect public health and the environment have been changing. This is because we now know that some common items that have traditionally been thrown in your household’s or small business’ trash cannot be safely disposed in landfills. These common items are referred to as hazardous waste, and some of them as universal waste (u-waste). As of February 9, 2006, all u-waste items are banned from the trash. For additional information on u-waste, please check the Department of Toxics Substances Control (DTSC) Web site.

The bottom line is that we must keep hazardous materials out of the trash by bringing them somewhere to be recycled or safely disposed such as a household hazardous waste collection facility. Check with your local waste management agency to find out where to take these items in your area.

Lights, Batteries, and Electronics

  • Fluorescent lamps and tubes. Includes fluorescent tubes, compact fluorescent lamps, metal halide lamps, and sodium vapor lamps.
  • Batteries. Includes all batteries, AAA, AA, C, D, button cell, 9-volt, and all others, both rechargeable and single use. Also lead-acid batteries such as car batteries.
  • Computer and television monitors. Most monitors are currently considered hazardous waste when they have lived their life and are ready for recycling or disposal, including cathode ray tube (CRT), liquid crystal diode (LCD), and plasma monitors. Learn about the State program to offset the cost of proper television and monitor recycling .
  • Electronic devices. Includes computers, printers, VCRs, cell phones, telephones, radios, and microwave ovens. Refer to How do I know if a particular electronic device can’t be thrown in the trash? for more information.

Mercury-Containing Items

  • Electrical switches and relays. These typically contain about 3.5 grams of mercury each. Mercury switches can be found in some chest freezers, pre-1972 washing machines, sump pumps, electric space heaters, clothes irons, silent light switches, automobile hood and trunk lights, and ABS brakes.
  • Thermostats that contain mercury. There is a mercury inside the sealed glass tilt switch of the old style thermostats (not the newer electronic kind).
  • Pilot light sensors. Mercury-containing switches are found in some gas appliances such as stoves, ovens, clothes dryers, water heaters, furnaces, and space heaters.
  • Mercury gauges. Some gauges, such as barometers, manometers, blood pressure, and vacuum gauges contain mercury.
  • Mercury thermometers. Mercury thermometers typically contain about a half gram of mercury. Many health clinics, pharmacies and doctor’s offices have thermometer exchange programs that will give you a new mercury-free fever thermometer in exchange for your old one.
  • Mercury-added novelties. Examples include greeting cards that play music when opened; athletic shoes (made before 1997) with flashing lights in soles; and mercury maze games.

Household and Landscape Chemicals

  • Flammables and poisons. Includes solvent-based (oil) paints and reactive and explosive materials.
  • Acids, oxidizers, and bases. Includes some pool chemicals and cleaners.
  • Pesticides and herbicides. Many pesticides and herbicides cannot be disposed in the trash. Consult the product label or check with your local household hazardous waste agency .

Paints and Solvents

  • Latex paint .
  • Oil-based paint (also listed under flammables).
  • Nonempty aerosol paint or solvent cans (all nonempty aerosol cans are banned from the trash).
  • Solvents. Includes materials such as paint thinners, finger nail polish remover, etc.

Building Materials

  • Asbestos. Includes some older kinds of cement, roofing, flooring and siding. More information on a sbestos in your home is available from the U.S. EPA.
  • Treated Wood . Includes wood that is treated with chromium copper arsenate (CCA).

Automobile-Related

Other

  • Compressed gas cylinders. Includes propane tanks used for BBQ or plumbing.
  • Needles and sharps generated in home health care . Includes hypodermic needles, hypodermic needles with syringes, blades, needles with attached tubing, syringes contaminated with biohazardous waste, acupuncture needles, root canal files, broken glass items such as Pasteur pipettes, and blood vials.
  • PCB-containing materials. Includes paint and ballasts that contain polychlorinated biphenyls (PCB).
  • Photo waste (silver bearing).
  • Nonempty aerosol cans that contain hazardous materials. Many products in aerosol cans are toxic. And many aerosol cans contain flammables, like butane, as propellants for products like paint. If your aerosol can is labeled with words like TOXIC or FLAMMABLE don’t put it in the trash unless it is completely empty.

How do I know if a particular electronic device can’t be thrown in the trash?
The Department of Toxic Substances Control (DTSC) has tested many electronic devices including: tube-type and flat panel televisions and computer monitors, laptop computers, computers central processing units (CPU), printers, radios, microwave ovens, video cassette recorders (VCR), cell phones, cordless phones, and telephone answering machines. The devices that DTSC tested contained concentrations of metals (lead and copper) high enough to make them hazardous wastes when they are discarded. Unless you are sure they are not hazardous, you should presume these types of devices need to be recycled or disposed of as hazardous waste and that they may not be thrown in the trash.


Home Loan Rates – find the latest interest rates here #mortgage #interest #deduction


#latest mortgage rates

#

Last updated: 16 September 2016 10:00am

This table is updated regularly and is intended as a brief guide to residential loans on owner-occupied properties in New Zealand. Users are advised to confirm the rates and conditions that will apply in your particular situation directly with the lender.

Terms explained

Floating rate: also known as the variable rate. This fluctuates according to market conditions.
Fixed rate: this rate applies for the length of the loan, which is fixed for a set period. We have given a sample of fixed rate periods only: many lenders offer fixed rate loans for as little as six months, while some go out to seven years.
LVR: this stands for the loan to value ratio and is the maximum percentage of a property’s value that the institution will lend to. Check with the lender for any special conditions. Many, for example, may require you take out mortgage insurance if the LVR is over a certain level, or there may be other restrictions such as lending for apartments, which can be to a much lower LVR.
Front-end fees: these are also known as establishment, application or loan approval fees. They are are one-off charges by the lender for setting up the loan.
Capped rate: the maximum rate that will apply to a loan during its capped period. If the floating rate drops below the capped rate applicable then the lower floating rate will apply instead. There is no penalty for paying off lump sums, totally repaying the loan or for increasing your payments.

Disclaimer

Every possible effort has been made to keep the information in this table as accurate as possible, however, neither the publishers of Good Returns nor anyone engaged to compile this table accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers.


Here s the Average American s Mortgage Payment, by Age and Income – How Do


#monthly mortgage payment

#

Here s the Average American s Mortgage Payment, by Age and Income — How Do You Compare?

How much money does your family pay every month in mortgage-related expenses? Source: Mark Moz. via Flickr.

There is, perhaps, no bigger expense you will ever have than the purchase of your house. Along with saving for retirement, and a college education for your children, paying a mortgage has become one of the “Big Three” financial events in one’s life.

But how much are we actually spending on our mortgages, and does it make sense for the type of lives we lead?

Last month, the Bureau of Labor Statistics (BLS) released its Consumer Expenditure Survey for 2013. If you’ve ever bought a house, you know the monthly payment you make is actually more than just your mortgage. The regular price of being a homeowner also includes property taxes, the interest on your mortgage, several different types of insurance and — for the purposes of the data collected by the BLS — regular maintenance.

So, how much are average Americans paying for their mortgages? When we break it down by household income, here’s what the data says.

There are two important things to note, here.

The first is the percentage of pre-tax income that a household devotes to mortgage-related payments. With the exception of those earning between $80,000 and $100,000, each successive group — though it spends more on housing — is spending a smaller percentage of their income on their mortgage.

Second, it’s clear that this data isn’t perfect. Many may be wondering how a household earning under $40,000 per year could afford a home. While it’s certainly possible to own a home with that salary, the data is skewed, because it also includes retirees that already own their homes, and are able to live comfortably on far less than they may have been earning in their prime years.

To help get a little clarity, I also broke out the Average American’s mortgage payment by age as well.

There are, again, two key takeaways here. First, the bulk of first-time homebuyers are between the ages of 25 and 44. Once we eclipse the 44-year-old barrier, we starting seeing a reduction in mortgage payments.

That is due to a number of factors. First, some homeowners select a 15-year mortgage instead of a fixed, 30-year. Second, many who start with a 30-year fixed mortgage refinance to a 15-year mortgage once their salaries go up. And third, 30-year fixed mortgages allow for principal to be paid back early without a penalty.

More importantly, however, is what we see in the percent of income being devoted to mortgage payments. Although this percentage falls significantly from 25-year-olds all the way to 64-year-olds, it picks up again once folks enter their golden years.

This may go against conventional wisdom, as many have paid off their mortgages once they retire. But we often forget that property taxes and insurance still have to be paid indefinitely. Additionally, many of the fixes you may have made yourself in your younger years are now being contracted out to younger hands — and often at a premium.

At the same time, largely because of the poor record we Americans have at saving for retirement, the amount of income we have to fall back on in retirement is far less than we were earning during our working years.

The point is that it’s crucial for homeowners to take such costs — those that go beyond the mortgage principal and interest payments — into account when (1) buying their home, and (2) deciding whether or not to stay put when retirement time comes.

If you did a good job saving up in your younger years, this likely won’t be an issue. But for many Americans, there could sticker shock involved when taxes, insurance, and maintenance bills need to be paid on a house you own outright, while you’re bringing in less than you have since you were in your 20s.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .


Home Loan Rates – find the latest interest rates here #fixed #mortgage #rates


#latest mortgage rates

#

Last updated: 16 September 2016 10:00am

This table is updated regularly and is intended as a brief guide to residential loans on owner-occupied properties in New Zealand. Users are advised to confirm the rates and conditions that will apply in your particular situation directly with the lender.

Terms explained

Floating rate: also known as the variable rate. This fluctuates according to market conditions.
Fixed rate: this rate applies for the length of the loan, which is fixed for a set period. We have given a sample of fixed rate periods only: many lenders offer fixed rate loans for as little as six months, while some go out to seven years.
LVR: this stands for the loan to value ratio and is the maximum percentage of a property’s value that the institution will lend to. Check with the lender for any special conditions. Many, for example, may require you take out mortgage insurance if the LVR is over a certain level, or there may be other restrictions such as lending for apartments, which can be to a much lower LVR.
Front-end fees: these are also known as establishment, application or loan approval fees. They are are one-off charges by the lender for setting up the loan.
Capped rate: the maximum rate that will apply to a loan during its capped period. If the floating rate drops below the capped rate applicable then the lower floating rate will apply instead. There is no penalty for paying off lump sums, totally repaying the loan or for increasing your payments.

Disclaimer

Every possible effort has been made to keep the information in this table as accurate as possible, however, neither the publishers of Good Returns nor anyone engaged to compile this table accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers.


Home Loan Rates – find the latest interest rates here #us #mortgage #rates


#latest mortgage rates

#

Last updated: 16 September 2016 10:00am

This table is updated regularly and is intended as a brief guide to residential loans on owner-occupied properties in New Zealand. Users are advised to confirm the rates and conditions that will apply in your particular situation directly with the lender.

Terms explained

Floating rate: also known as the variable rate. This fluctuates according to market conditions.
Fixed rate: this rate applies for the length of the loan, which is fixed for a set period. We have given a sample of fixed rate periods only: many lenders offer fixed rate loans for as little as six months, while some go out to seven years.
LVR: this stands for the loan to value ratio and is the maximum percentage of a property’s value that the institution will lend to. Check with the lender for any special conditions. Many, for example, may require you take out mortgage insurance if the LVR is over a certain level, or there may be other restrictions such as lending for apartments, which can be to a much lower LVR.
Front-end fees: these are also known as establishment, application or loan approval fees. They are are one-off charges by the lender for setting up the loan.
Capped rate: the maximum rate that will apply to a loan during its capped period. If the floating rate drops below the capped rate applicable then the lower floating rate will apply instead. There is no penalty for paying off lump sums, totally repaying the loan or for increasing your payments.

Disclaimer

Every possible effort has been made to keep the information in this table as accurate as possible, however, neither the publishers of Good Returns nor anyone engaged to compile this table accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers.


Mortgage Trends – Where Will Rates Go From Here #loan #calculator


#mortgage trends

#

Mortgage Trends

Anyone who is considering the idea of purchasing a home these days will naturally try to fathom whatever direction the trends in mortgages may try and take. Tracking any sort of pattern in these tough economic times is difficult if not impossible. Along with the after-effects of a dismal housing market climate in general, potential home-buyers might just as well resort to a crystal ball or the roll of a dice to zero in on any accurate forecast. It is widely felt that mortgage rates should continue at or below 5% for a greater part of 2012, and perhaps for the whole year, which is simply an ongoing scenario seen in much of 2011 as well. The across-the-board interest rates for 30 year fixed mortgage rates hovered on the underside of 5% for the preceding year, though the 4% range became a reality for a while in the last quarter. Economists at organizations such as the Mortgage Bankers Association predict that these same mortgage rates will hold at the same level for 2012. In other words, unchanged.

Today s Mortgage Rates

When compared to rates over a longer historical period, there is no doubt that today’s mortgage interest rates are indeed at a notably low level. This is certainly a boon to any prospective homeowner planning to acquire a mortgage anytime in the upcoming year. The down-side of this is quite a few potential borrowers may have trouble qualifying for these low rates. This is simply because it is much more difficult to meet the newer and more rigorous credit standards as a result of the housing crisis in general. This factor is also expected to be a major characteristic of the ‘trend’ in mortgage rates for the coming year as well. Based on this outlook, prospective home-buyers with less-than-optimum credit standings. extreme levels of debt obligations, or even unpredictable employment security should undoubtedly have difficulty acquiring a housing loan during 2012 due to much more meticulous lending constraints and oversight.

Current Mortgage Requirements

The requirements a potential borrower will need to be eligible for a mortgage in 2012 will be quite detailed. They will need to be very thorough in providing sufficient background material. They should also be prepared to meet the more rigorous requirements of having credit ratings at a minimum of 600 or higher, depending on the lending institution. In addition, there will be greater scrutiny with regard to documented proof of employment steadiness and security as well as verifiable income levels. Debt obligation levels are required to fall within certain percentages in relation to a home-buyer total income.

The Reality of the Current Mortgage Environment

As an ongoing after-effect of the housing crisis of 2008, there will be fewer mortgaging options for home-buyers in the coming year, leaving the more ‘exotic’ type of lending methods a thing of the past. One form of collateral damage caused by the crisis has been the ‘stated income’ loans, which permitted potential buyers to rely on undocumented income statements to acquire loan approval. Likewise, the identical treatment will be extended toward ‘no-doc’ mortgages, where the lender will request far more detailed information regarding employment, income, assets, and debt standings than was required in the recent past. Piggy-back mortgages have also gone the way of the chopping block in many states, which were utilized when a borrower combined two mortgage loans to avoid paying the private mortgage insurance (PMI) requirements on the loan.

The potential home buyer looking to secure a mortgage loan needs to possess a good bit of insight and instinct to understand not only the trends in the local mortgage market, but those that affect the national mortgage market as well. Each of these have a direct impact on the prevailing interest rates. Careful and diligent research via numerous online sites should provide adequate information regarding the current mortgage trends and lending practices in a borrower’s desired market. No amount of investigation or thoughtful planning is wasted in this all-important milestone for acquiring the best possible mortgage at the most favorable rates.