Shirley Kistler's Real Estate Blog: Serving your Real Estate Needs in Sacramento, Placer and El Dorado Counties

According to an analysis of more than 25,000 loan quotes and purchase request on Zillow Mortgage Marketplace during the first half of September; almost 1/3 of Americans are unlikely to qualify for a mortgage because their credit scores are too low. 

They found that 29.3% of borrowers have a credit score less than 620.  The lowest rates went to 47% of borrowers with excellent credit scores of 720 or above. 

Zillow Mortgage Marketplace quoted that during this period, borrowers with excellent scores got an average rate of 4.3% for conventional 30 year mortgages.  Mid range borrowers with credit scores between 620 and 719 received rates between 4.73% and 4.44%.  Those with credit scores below 620 received too few loans to calculate the interest rates received. 

For each 20-point credit score increase, the average annual percentage rate (APR) declines 0.12%.

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• One-third ‘highly unlikely’ to get mortgage (money.blogs.time.com)

In the past 32 years working in the real estate industry, I have not experienced a 4-1/2 % interest rate on a 30-year fixed rate loan.   It is time to give a lot of thought to purchasing a  home in this market. 

Are you concerned that  home values may decline?   

Sure, it is possible but will you ever see 4-1/2% again?   That equates to $450 for every $100,000 in the purchase price of your home.  Can you rent for that monthly payment?  I doubt it.  Lets also not forget the tax benefits of owning your own home and the freedom of making your house a home for you and family.

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