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With 30 year fixed rate loans hovering around 5%, is this the time to pull the trigger on a re-finance of your mortgage?  There are two groups of qualified borrowers who should look at refinancing?

• Those who have fixed-rate mortgages above 6%.
• Those who have adjustable-rate mortgages and want the security of a fixed-rate loan.

With Fixed-rate loans, you will not have to worry about future rate increases. In today’s economic climate, people want the secure feeling of having a stable mortgage payment that comes with a fixed-rate loan.

There is no better time to get out from under your adjustable loans and high-rate seconds, which means lower interest rates and lower payments.

How To Navigate The Refinance Waters… there will be a bottle neck of files turned in because of the current interest rate drop. In order to insure a quick and painless transaction consult your mortgage processional on:

• New Guidelines
• New Fico Score Requirements
• New Loan to Value Changes
• New Income Documentation Needed

Turning in all documentation requested is the BEST and MOST EFFICIENT WAY to send your file to the top of the pile.

Feel free to contact us if you have been wondering if now is a good time to REFI!

How does making an inquiry on your Credit Report effect your credit score???

Image via Wikipedia

When a consumer pulls their own credit report, it is considered a “consumer disclosure” request and therefore their credit scores will not be impacted by the pull.  However, anytime a creditor accesses a consumer’s credit report it posts a credit inquiry. The credit report keeps a record of who pulled the credit report and on what date.  The credit bureaus are required to keep a complete list of all inquiries into a credit report for, in most cases, 24 months.  According to credit scoring research, consumers who are actively shopping for credit are higher credit risks than consumers who are not.  Since there is a correlation between shopping for credit and being a higher credit risk, an inquiry will, in some cases, lower a consumer’s credit score.

FICO scoring models have logic built into them that addresses “rate” shopping for auto and mortgage lending.  The models are smart enough to discriminate between comparison-shopping for the best interest rate and trying to open many credit accounts in a short period.

While the actual number of points that an inquiry is worth is a closely guarded secret, it is safe to say that only consumers who are “excessively” shopping for credit are seriously damaging their scores.  Consumers should shop and apply for credit only when they need it and, optimally, only after getting their credit and scores in good order.

This is a great topic for discussion, so please leave your comments and questions below.  Hopefully, this can be a learning experience for us all!

Just released; As of March 5, 2008, the Federal Housing Administration and HUD, have Increased the loan limits for FHA insured loans. 

In Denver and most of the surrounding counties the limit has increased to $406,250 for a single family residence.

This increase should ease some of the pressure felt on the mortgage market.

For a complete listing of the new loan limits for Colorado Counties go the the HUD website by clicking here!

For questions on what this may mean for you, please contact the Get Home Denver Team.