“Mortgage meltdown” not affecting the availability of mortgages today.
You hear the term “mortgage meltdown” almost every day and assume it will be tough to get a mortgage. In reality, mortgage loans are abundant with most mortgage products relatively unaffected by the recent troubles in the subprime segment. According to Tim Burke, CEO of Nationwide Lending Corporation, “mortgage money is plentiful, just the products and underwriting that allowed people to buy homes they couldn’t afford have disappeared.”
Burke goes on to say “interest rates for a 30 year fixed-rate mortgage remain close to 6% for borrowers with reasonably good credit; it doesn’t need to be perfect. Internet lending has allowed Nationwide to offer wholesale rates and fees and not compromise service”. Other than subprime, 100% loan-to-value and stated-income, there is mortgage money available to anyone with the capacity to repay the loan and ability to document their income.
More affordable home prices, combined with historically-low interest rates and a large surplus of houses, presents a great opportunity to buy. The current housing market is particularly advantageous for first-time home buyers who can benefit from a temporary $7,500 tax credit that Congress put in place and that will expire after June 30, 2009.
