It is definitely getting easier these days to obtain Columbia SC mortgages.
A strong housing market combined with fears that the Federal Reserve would eventually begin tapering its purchases of mortgage bonds helped drive up the cost of a 30-year fixed-rate mortgage from about 3.3 percent in January 2013 to nearly 4.6 percent by September.
Since then, Columbia SC mortgages have backed off those recent highs, bobbing back and forth between 4.5 percent or so, and, recently, 4.2 percent. This has helped to keep housing affordable for those who want to buy a home. But it did pose the bankers a dilemma: How could they get more people to want to buy homes in the first place, so they could sell more Columbia SC mortgages?
Answer: Make it easier to apply for those Columbia SC mortgages.
What Lenders Are Doing to Make Getting Columbia SC Mortgages Easier
Demanding less money up front to obtain a mortgage is one obvious way to ease more buyers into the housing (and home mortgage) market. Another tool is loosening up lending restrictions.
According to LendingTree, "Average credit scores for borrowers matched with lenders on the LendingTree network have dropped 6 percent year over year." This, says LendingTree, indicates banks being "more willing to consider a wider pool of borrowers."
Company founder and CEO Doug Lebda put it this way: "As the housing market improves and refinance activity declines, lenders are adapting their guidelines to improve credit accessibility for borrowers. Relaxed lending guidelines translates to a larger pool of qualified homebuyers."
Obviously this is great news for those buying Columbia SC homes and getting Columbia SC mortgages. With actual mortgage rates now range-bound, it's a bit cheaper to obtain a mortgage today than it was a year ago, and there's also less uncertainty about which way mortgage rates are moving.
Throw in the fact that bankers are less antsy about the risk their loans will ultimately get defaulted on, and it's also a bit easier to get that mortgage loan approved.
Granted, it's developments just like these that sucked America into a financial crisis that nearly destroyed the economy six years ago. But if that's what it takes to get you into a new home — and a new mortgage obligation — apparently, the bankers are willing to risk it.
Stay tuned, we'll keep you updated right here on Columbia SC mortgages and the trends that either cause the market to make it easier, or more difficult, to get those mortgages in the future. In the meantime, check out our other articles and news affecting Columbia SC mortgages by clicking on the Columbia SC Mortgage Info link to your right under Columbia SC Real Estate Categories.
If you found yourself having to negotiate with your lender to get out of your mortgage and have a Columbia SC short sale on your credit history, there are some things you need to do if you ever want to become a homeowner again.
Anyone who has been through a Columbia SC short sale is pretty much branded as a high-risk borrower, so new loans won't come quickly or easily in the future.
A short sale is when a lender agrees to accept less than is owed on a property, allowing the borrower to walk away and avoid foreclosure. Fannie Mae, the federally controlled mortgage investor, sets guidelines for the minimum amount of time that must elapse before a short-seller is eligible for another loan salable to the agency.
Waiting Period After a Columbia SC Short Sale
If you've been through a Columbia SC short sale, Fannie Mae requires a waiting period of at least four years for short-sellers who can only put down 10 percent on their next home. The waiting period is shortened to two years for borrowers who can come up with 20 percent.
Fannie does allow the four-year period to be cut in half for borrowers who can document that their Columbia SC short sale was a result of "extenuating circumstances." The agency defines these circumstances as one-time events that were beyond the borrower's control, such as job loss, medical bills, or a financial hit from divorce. Borrowers must also be able to show that they had no reasonable option other than to default.
Those who have been through a Columbia SC short sale who hope to someday obtain another mortgage should pay careful attention to their credit while riding out the forced waiting period. Frugal management of revolving credit should be first and foremost on your mind making sure outstanding balances do not exceed 30 percent of your credit limit. And borrowers should stay current on all of their credit obligations.
If you've been through a Columbia SC short sale, keep detailed records of income sources. New regulations require lenders to prove borrowers' ability to pay, and the more documentation you can offer, the more the originator can go to bat for you on a new mortgage.
Having a Columbia SC short sale on your credit history is not the end of the world, and certainly not as damaging as a foreclosure. Just realize, buying another home will be a challenge, but certainly not impossible.
Visit our Mortgage Info section of articles, including other articles concerning foreclosures and short sales by clicking on the Columbia SC Mortgage Info link to your right under Columbia SC Real Estate Categories.
When you decide that owning a home is right for you, one of the big decisions you'll face is with your Columbia SC mortgage. Should you choose a 30-year fixed rate mortgage, or a 15-year fixed rate? Here are the advantages and disadvantages of these two popular options when it comes to getting a Columbia SC mortgage…
We can help you decide whether a 30-year fixed rate or a 15-year fixed rate Columbia SC mortgage is best for you, or whether considering one of the many adjustable rate options is better for your circumstances.
We also have other articles and tips pertaining to getting a Columbia SC mortgage, and things you need to know before deciding which type of mortgage is best for your circumstances and budget by clicking on the Columbia SC Mortgage Info link to your right under Columbia SC Real Estate Categories.
There is still confusion today over the difference between Columbia SC short sales and foreclosures, so we wanted to hit the highlights of each in this short real estate minute video.
Both Columbia SC short sales and Columbia SC foreclosures will negatively impact your credit and ability to buy another home, but going the short sale route may give you a better chance of buying another home in a shorter period of time as opposed to allowing your lender to foreclose on your home.
We have other articles and tips pertaining to Columbia SC short sales and foreclosures by clicking on the Columbia SC Mortgage Info link to your right under Columbia SC Real Estate Categories.
A Columbia SC cash out refi may soon be a thing of the past, and has in fact, already tumbled from a peak of $320 billion in 2006 to just $32 billion in 2013.
During the housing boom of the mid-2000's, a Columbia SC cash out refi became a popular outlet for homeowners. Homeowners were encouraged to think of their homes as ATM's they could easily withdraw cash from, in the form of a cash out refinance.
Decrease in Columbia SC cash out refi popularity is due to three reasons:
1. A Columbia SC cash out refi is closely tied to an increase in home prices.
Despite jumping 11.5% year-over-year nationally in 2013, inflation adjusted housing prices are still down about 30% from the bubble peak.
In addition, analysts don't expect home prices to continually rise as they did in the bubble years, which could make borrowers less likely to withdraw equity from their homes. Home prices are projected to increase by 4% in 2014 and 2% in 2015 followed by a 2% increase on average in the long term. As a result, many borrowers would still be unable to use a Columbia SC cash out refi due to the lack of home equity.
2. A shift in borrower mentality from using their homes as an ATM.
Homebuyers are making more of a concerted effort to pay down or pay off their debts instead of expanding or upgrading. As lending standards tightened after the crash, borrowers' credit quality has improved.
3. A Columbia SC cash out refi is not always cheap when compared to alternatives like home equity loans.
While the interest rates on a Columbia SC cash out refi are usually lower than those on a home equity loan, they can become expensive once additional loan level pricing adjustments are factored into the equation.
Depending on the FICO/LTV combination, a borrower could pay up to 3% of their mortgage balance upfront or 0.75% additional annual interest rate for a cash out refi. Additionally, cash-outs are not available to high LTV borrowers. Guidelines stipulate that a Columbia SC cash out refi is not permitted for borrowers with LTV greater than 85. Finally, closing costs are required for cash-out refinances, but they are not needed for home equity loans.
Given these 3 factors, it would seem unlikely for the Columbia SC cash out refi to make a comeback or return to pre-crash levels.
For more mortgage tips and information, check out the link to our Columbia SC Mortgage Info under Columbia SC Real Estate Categories to your right.