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Mortgage Rate Update

Mortgage Rate Update
High Credit Score = Low Mortgage Rate

Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.

There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans.

There are many quick tricks to improve the credit score, and I can provide borrowers with more information on this subject. If necessary, I guide them to a reliable resource for credit remediation. If a borrower has to pay a higher interest rate to close a loan, the tarnished credit rating will begin to improve once mortgage payments are made on time and in full. If that is the case, my team and I will be on the watch to alert the borrower when an opportunity arises to refinance and get a lower interest rate.

Mortgage Interest Rates*

Rates as of Thursday, 10th September, 2009:

Conforming

APR

Payment per
$1,000

Jumbo

APR

Payment per
$1,000

30-Yr. fixed

5.000%

5.131%

$5.37

5.375%

5.465%

$5.60

15-Yr. fixed

4.500%

4.723%

$7.65

4.875%

5.026%

$7.84

7-Yr. fixed ARM

4.500%

4.627%

$5.07

6.500%

6.596%

$6.32

5-Yr. fixed ARM

4.000%

4.124%

$4.77

6.125%

6.219%

$6.08

3-Yr. fixed ARM

4.000%

4.124%

$4.77

6.125%

6.219%

$6.08

5-Yr. Interest Only

4.000%

4.124%

$3.33

5.375%

5.465%

$4.48

FHA 30-year fixed

5.000%

5.131%

$5.37

5.250%

5.339%

$5.52

*Rates are subject to change due to market fluctuations and borrower's eligibility.

Karl Peidl

Accredited Loan Consultant

Lincoln Mortgage Company

251 Bellevue Avenue, Suite 102

Hammonton, NJ 08037

609-878-7013

kpeidl@linc-mort.com

www.karlpeidl.com

Pennsylvania: Licensed by the PA Department of Banking as a First Mortgage Banker and licensed pursuant to the PA Secondary Mortgage Loan Act. New Jersey: Licensed by the N. J. Department of Banking and Insurance Maryland: Authorized Mortgage Lender by the State of Maryland Commissioner of Financial Regulation. Florida: Licensed Mortgage Lender by the Florida Office of Financial Regulation. Delaware: Licensed Lender by the Delaware Office of the State Bank Commissioner.



Karl Peidl
Lincoln Mortgage Company
251 Bellevue Avenue, Suite 102
Hammonton, NJ 08037

© Copyright 2009. All About News, Inc.

Posted Thursday Sep 10