Although the mortgage rates are almost lowest than ever, but lenders are continuously making it harder for borrowers to get a home loan.
According to the Bankrate.com national survey of large lenders, the benchmark 30-year fixed-rate mortgage fell 16 basis points, to 5.19 percent. In this week’s survey, the mortgages had an average total of 0.38 discount and origination points, whereas the mortgage index was 6.39 percent one year ago, and four weeks back, it was 5.32 percent.
The benchmark 15-year fixed-rate mortgage reached 4.61 percent after falling 11 basis points.
Since Bankrate’s April 15 survey, the 30-year fixed hasn’t been this low. In the 24-year history of Bankrate’s weekly survey, the all-time low was 5.13 percent, which was on April 1 this year.
The mortgage financing giants, Fannie Mae and Freddie Mac, have tightened the lending standards over time in several ways, since two years. They imposed risk-based pricing by charging fees on loans in case of certain circumstances, such as charging 3 percent of the loan amount for making a down payment of less than 25 percent while having a credit score below 660.
Many other reforms have also been done including the ‘trailing second wage earner’ rule. According to this rule, if you move to take a new job and your spouse or partner hasn’t yet found a job, you cannot apply for a mortgage based on the co-applicant’s anticipated income. Many lenders already have stopped including anticipated income, anyway.
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