Here is what you need to consider when applying for a mortgage in today’s financial world: Excellent Credit!!! Banks are still shying away from those with less than perfect credit when it comes to lending out on homes.  Especially, since they are loosing money on the loans they wrote several years ago. They only want the best of the best to ensure that these loans do not go south, too.

So, how does one get excellent credit?  They have to have a credit history.  The easiest way to establish a credit history is, you guessed it… Credit Cards.

You might be thinking then that credit card debt is good to have then, not quite.  You see lenders look at your total debt to income ration.  They want to know how much of your income goes to paying debt.  Also, credit bureaus look at the ratio of available credit to credit limit.  Too high of a balance compared to the limit, hurts your score.  Having too much available credit compared to your overall credit limits can also damage a score.

It is a fine balance that one must maintain when it comes to credit cards, balances, and rations.  Here is a general rule of thumb that you can use to get the best results to have a healthy credit score:

• Keep balances less than 50% of the actual credit limit.
• Have one of each of the major credit cards: Visa, MasterCard, Discover and AmericanExpress.
• If at all possible, pay the account off every month.
• Do not close these 4 accounts unless you absolutely have to.  Keep them open for years and years, even if you do not use them.

By using a credit card properly, you can see your credit score jump drastically in a matter of a few months to help you get into that home you want.

Remember, this month also has Thanksgiving at the end of the month. So figure from Wednesday, November 25 through to Monday, November 30, there will be no closings. Lenders will be closed on Thanksgiving and a lot of title companies will close early on Wednesday and not open again till Monday to Tuesday. The title companies can only close so many loans in one day.

With that being said, Knightlines Mortgage Services, LLC has the ability to close a new home loan purchase in under two weeks. And our title company that we recommend will work past normal business hours to get your loan closed before the deadline.

Call us today at 352.308.7219 to get your loan package moving forward and to be one step closer to putting an extra $8,000 in your pocket.

When it disappeared, I was left staring in utter shock at what it left behind:

30 Year Fixed:

Interest Rate – 4.875%

APR – 4.966%

Payment – $793.81

15 Year Fixed:

Interest Rate – 4.375%

APR – 4.530%

Payment – $1,137.93

30 Year Jumbo:

Interest Rate – 5.125%

APR – 5.233%

Payment – $2,722.43

15 Year Jumbo:

Interest Rate – 4.625%

APR – 4.808%

Payment – $3,856.99

*The rates published on this page are applicable only to requests received from this site or by calling 352-308-7219. Mortgage rates published on this page are the current rates for a single-family, primary residence based on a 30-day lock period and are subject to change without notice. In order to receive a guaranteed rate, you must have applied for an application through Knightlines Mortgage Services, LLC and received a verbal confirmation from a mortgage broker that your desired rate is locked. Your guaranteed mortgage rate will depend on factors such as current market conditions, loan product, occupancy, property type and your credit profile.

Loan Product Information

• Conforming rates are for loan amounts not exceeding $417,000 ($625,500 in AK and HI)

• Jumbo rates are for loan amounts exceeding $417,000 ($625,500 in AK and HI)

• Additional loan products, rates and lock periods are available.

Conforming Fixed APR calculation assumes a $150,000 loan amount with a 20% down payment, estimated borrower paid finance charges of .75% of the loan amount plus discount and origination if applicable. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the APR.

Jumbo Fixed APR calculation assumes a $500,000 loan amount with a 20% down payment, estimated borrower paid finance charges of .75% of the loan amount plus discount and origination if applicable. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the APR.

But you better hurry and take advantage of the minor dip back down before you wake up and realize the reality of the 5% range.

Mortgage Rates for October 20, 2009

30 Year Fixed:

Interest Rate – 4.875%

APR – 4.966%

Payment – $793.81

15 Year Fixed:

Interest Rate – 4.375%

APR – 4.530%

Payment – $1,137.93

30 Year Jumbo:

Interest Rate – 5.125%

APR – 5.233%

Payment – $2,722.43

15 Year Jumbo:

Interest Rate – 4.625%

APR – 4.808%

Payment – $3,856.99

*The rates published on this page are applicable only to requests received from this site or by calling 352-308-7219. Mortgage rates published on this page are the current rates for a single-family, primary residence based on a 30-day lock period and are subject to change without notice. In order to receive a guaranteed rate, you must have applied for an application through Knightlines Mortgage Services, LLC and received a verbal confirmation from a mortgage broker that your desired rate is locked. Your guaranteed mortgage rate will depend on factors such as current market conditions, loan product, occupancy, property type and your credit profile.

Loan Product Information

• Conforming rates are for loan amounts not exceeding $417,000 ($625,500 in AK and HI)

• Jumbo rates are for loan amounts exceeding $417,000 ($625,500 in AK and HI)

• Additional loan products, rates and lock periods are available.

Conforming Fixed APR calculation assumes a $150,000 loan amount with a 20% down payment, estimated borrower paid finance charges of .75% of the loan amount plus discount and origination if applicable. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the APR.

Jumbo Fixed APR calculation assumes a $500,000 loan amount with a 20% down payment, estimated borrower paid finance charges of .75% of the loan amount plus discount and origination if applicable. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the APR.

While we can only hope that these rates find their red ruby slippers sticking out from under some financial institution, we are left to embrace the reality that they are now merely a memory of the past and a dream of the future.

30 Year Fixed:

Interest Rate – 5.125%

APR – 5.278%

Payment – $816.73

15 Year Fixed:

Interest Rate – 4.625%

APR – 4.883%

Payment – $1,157.10

30 Year Jumbo:

Interest Rate – 5.50%

APR – 5.61%

Payment – $2,838.95

15 Year Jumbo:

Interest Rate – 5.00%

APR – 4.184%

Payment – $3,953.97

*The rates published on this page are applicable only to requests received from this site or by calling 352-308-7219. Mortgage rates published on this page are the current rates for a single-family, primary residence based on a 30-day lock period and are subject to change without notice. In order to receive a guaranteed rate, you must have applied for an application through Knightlines Mortgage Services, LLC and received a verbal confirmation from a mortgage broker that your desired rate is locked. Your guaranteed mortgage rate will depend on factors such as current market conditions, loan product, occupancy, property type and your credit profile.

Loan Product Information

• Conforming rates are for loan amounts not exceeding $417,000 ($625,500 in AK and HI)

• Jumbo rates are for loan amounts exceeding $417,000 ($625,500 in AK and HI)

• Additional loan products, rates and lock periods are available.

Conforming Fixed APR calculation assumes a $150,000 loan amount with a 20% down payment, estimated borrower paid finance charges of .75% of the loan amount plus discount and origination if applicable. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the APR.

Jumbo Fixed APR calculation assumes a $500,000 loan amount with a 20% down payment, estimated borrower paid finance charges of .75% of the loan amount plus discount and origination if applicable. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the APR.

This week, we will start with the ever popular USDA 100% Program.  Here are a quick highlights on the program:

• 100% Financing
• Seller Concession of up to 6%
• No PMI
• No Reserves Requirement
• Can Substitute Schooling for Experience

As with any program, there are guidelines and requirements that must be met.  With the USDA 100%, a borrower has to meet certain income levels while staying below a debt-to-income level threshold.  The property that is being purchased even has restrictions that are determined by geographical location.

To find out more about the USDA 100% Program, call us today at 352.308.7219 or click to Apply Now.

What does that have to do with this week’s mortgage rate report? Well, funny you should ask. I have heard from a very close friend of mine who works for Apple that many people are upset with the new release of iPods. Why? People were “wanting” a video camera in the iPod touch. Apple met the “need” for a video camera, but put it in the iPod nano.

Let’s take this to mortgages now. Many people want, low rates, low prices, and the perfect home. Well, you can’t always get what you want. Right now, the market is giving you at best 2 of the 3. Low rates still exist and low prices are still hanging on. But, the want to find the perfect home might just not be there. Go with what you need… a roof, walls, 2 or 3 bedroom, bathrooms, kitchen, etc. It might be the wrong shade of color. Or the kitchen might be a little outdated. Who cares!!! Get what you need before you cannot get anything at all.

So with that being said, here are the mortgage rates for today that you have been “wanting” to see:

30 Year Fixed:

Interest Rate – 4.875%

APR – 4.966%

Payment – $793.81

15 Year Fixed:

Interest Rate – 4.375%

APR – 4.530%

Payment – $1,137.93

30 Year Jumbo:

Interest Rate – 5.375%

APR – 5.484%

Payment – $2,799.86

15 Year Jumbo:

Interest Rate – 4.875%

APR – 4.922%

Payment – $3,921.49

*The rates published on this page are applicable only to requests received from this site or by calling 352-308-7219. Mortgage rates published on this page are the current rates for a single-family, primary residence based on a 30-day lock period and are subject to change without notice. In order to receive a guaranteed rate, you must have applied for an application through Knightlines Mortgage Services, LLC and received a verbal confirmation from a mortgage broker that your desired rate is locked. Your guaranteed mortgage rate will depend on factors such as current market conditions, loan product, occupancy, property type and your credit profile.

Loan Product and APR Information

• Conforming rates are for loan amounts not exceeding $417,000 ($625,500 in AK and HI)

• Jumbo rates are for loan amounts exceeding $417,000 ($625,500 in AK and HI)

• Adjustable-rate loans and rates are subject to change during the loan term. That change can increase or decrease your monthly payment.

• Additional loan products, rates and lock periods are available.

Conforming Fixed, ARM APR calculation assumes a $150,000 loan amount with a 20% down payment, estimated borrower paid finance charges of .75% of the loan amount plus discount and origination if applicable. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the APR.

Jumbo Fixed APR calculation assumes a $500,000 loan amount with a 20% down payment, estimated borrower paid finance charges of .75% of the loan amount plus discount and origination if applicable. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the APR.

Mortgage rates have been holding steady for the past couple weeks.  Mortgage applications have increased.  Is this a sign that the market is turning around?  If it is, then you need to act quickly to get the good housing prices and stop rolling the dice when it comes to your interest rate.

This week’s mortgage rates:

30 Year Fixed:

Interest Rate – 5.0%

APR – 5.151%

Payment – $805.23

15 Year Fixed:

Interest Rate – 4.5%

APR – 4.757%

Payment – $1,147.49

30 Year Jumbo:

Interest Rate – 5.375%

APR – 5.484%

Payment – $2,799.86

15 Year Jumbo:

Interest Rate – 4.75%

APR – 4.933%

Payment – $3,889.16

Please feel free to share your comments on this new formatting versus the old one with the charts.  I feel that this will be easier to read.  Also, I have taken out the ARM rates, as no one has expressed interest in ARMs.  If you would like a custom quote on ARM rates, please feel free to call me at 352-308-7219.

*The rates published on this page are applicable only to requests received from this site or by calling 352-308-7219. Mortgage rates published on this page are the current rates for a single-family, primary residence based on a 30-day lock period and are subject to change without notice. In order to receive a guaranteed rate, you must have applied for an application through Knightlines Mortgage Services, LLC and received a verbal confirmation from a mortgage broker that your desired rate is locked. Your guaranteed mortgage rate will depend on factors such as current market conditions, loan product, occupancy, property type and your credit profile.

Loan Product and APR Information

• Conforming rates are for loan amounts not exceeding $417,000 ($625,500 in AK and HI)

• Jumbo rates are for loan amounts exceeding $417,000 ($625,500 in AK and HI)

• Adjustable-rate loans and rates are subject to change during the loan term. That change can increase or decrease your monthly payment.

• Additional loan products, rates and lock periods are available.

Conforming Fixed, ARM APR calculation assumes a $150,000 loan amount with a 20% down payment, estimated borrower paid finance charges of .75% of the loan amount plus discount and origination if applicable. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the APR.

Jumbo Fixed APR calculation assumes a $500,000 loan amount with a 20% down payment, estimated borrower paid finance charges of .75% of the loan amount plus discount and origination if applicable. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the APR.

DO/DU is Fannie Mae’s automatic underwriting system.  When an application is taken, it is run through this pre-determined set of criteria to determine a borrower’s eligibility for a new mortgage loan.  The problem is that these criteria do not take into consideration other compensating factors.

Why America needs to go back to manually underwritten loans and not a computer generated decision?  Here are two examples that have happened in the past week of why America needs to go back to manual underwriting of mortgage loans.

Scenario 1: The borrower has a credit score of 740.  Is putting down 10-20% of the purchase price.  The debt-to-income (all monthly debts plus PITI) is 20%.  Has been on the job for 3 months, but in the same line of work for 20 years.  His new job has a higher salary then his previous employer.  These are all things that under a common sense, manually underwritten loan would have me saying congratulations.

FNMA’s DO/DU denied the loan.  Why?  Because he had a mortgage credit late of 30 days.  Why did he have a mortgage credit late?  Because his previous employer laid everyone off.  If was not his fault, he did what he could to stay on top of his payments till he could find a new job.  In his quest to find a new job, he had to relocate to where the job would hire him.  He sold his house without having to do a short sale and moved to the new area.  Now, he cannot buy despite that credit mortgage late.  It is a pity that the bank will not even  take a look at this to argue an exception because FNMA is not allowing exceptions.

Scenario 2:  This is very similar to scenario 1, but instead of a  mortgage late there was a bankruptcy approximately 3 years ago.  This time last year, no problem.  Now, it has to be 4 years, no exceptions.  Never mind the fact that he has 20% down, or a credit score in the 700s, or a very low debt-to-income ratio, or many years on the job.

A trained underwriter would see that the bankruptcy was actually stemming from a divorce to handle the debt accrued during the marriage.  It was not that payments could be made.  It was to get him from being responsible for debt that his ex-wife got him into by being on joint accounts.

Going back to manual underwrites opens many doors for many people that are qualified borrowers, but are getting the door slammed in their face because a computer cannot look at the big picture.  Plus, if we go back to manual underwrites, lenders would need to hire more underwriters (a boost in employment), they would close more loans, and more money would be back in the economy.  By letting a computer decide, there are no jobs, there are no common sense decisions being made, and there is no help to the economy.

Perhaps, we should take the same voice that we all hold for the medical reform and shout it out at reforming the mortgage industry and going back to good old traditional manual underwriting.