The Boston Globe ran a good article on the spreading impact of the tightening of mortgage credit. Residents in Massachusetts, even those with good credit, are having a much harder time getting jumbo loans or are getting loans are significantly higher rates. The rate on jumbo loans increased by 75 basis points (3/4 of a percent) in the last week. Jumbo loans are loans above the $417,000 purchasing limit of Fannie Mae and Freddie Mac. Lenders have become increasingly concerned about mortgages that they can't sell off to either of these agencies.
Another part of the article that I found interesting was where it discussed one homebuyer who was having trouble getting a home. It mentioned that he was surprised even though he only planned to put down 5% of the purchase price. Is it just me or does that seem like a paltry payment? Wouldn't he have to pay PMI? It seems to me that if you want to buy a home you should be willing to put down at least 10% if not 20% of its value.
Sponsor Updates and Offers
|
|
|
Related Articles:
How Might Subprime Issues Unravel? by ChristySchien - Jun 21, 2007
Bear Stearns Lends $3.2 Million to Its Fund Brought Down By Sub-Prime Woos by JRodgers - Jun 23, 2007
Massachusetts to Refinance Troubled Mortgages by LikeItIs - Jul 11, 2007
New York Real Estate Prices at New Heights by PhilR - Jul 03, 2007
Good Recap on Housing Bubble News by PhilR - Jul 06, 2007
Boom Town in Boston by PhilR - Jul 13, 2007
Six popular incentives that might catch a home buyer's attention by PhilR - Jul 18, 2007
First Stage of Real Estate Grief by CherylW - Jun 22, 2007
Key home sale index slides to 6-year low by Sol Nasisi - Jul 03, 2007.
Add to reading list
