David Epprecht

The Mortgage Market in CT Looks Bright for 2012!

As 2012 approaches, the environment for mortgage rates and qualifying for a loan looks bright. We are finishing out the year with mortgage rates back down to the historic lows available earlier this fall. According to experts and those who track the markets, there is not a lot on the horizon to indicate an upward trend in rates for the near future. In fact, the Federal Reserve has stated it is part of their policy objective to keep borrowing rates low at least until 2013 in order to aid recovery. It is anticipated that once the recovery begins to gain real momentum, rates will begin to rise again.

If you are thinking about buying a home and financing it over the next few years, it is unlikely borrowing costs will be as low as they are today. For folks who are currently renting, it is not uncommon for the cost of a mortgage to be lower than rent when rates are in the 3’s and 4’s. We all lose sight of the fact that that 30 year fixed mortgage rates were in the 8’s not even 10 years ago.

Greg Reichman

The other bright spot for 2012 is that as long as a borrower meets the basic criteria of decent (not perfect) credit, has a source of income and a little cash for a down payment and closing, it is not and will not be difficult to obtain a mortgage. The perception out there which has been enhanced by the media is that in today’s world (post financial crisis of 2008 / 2009), obtaining a mortgage has become very difficult and unobtainable for a lot of people. It is true that the reckless mortgage product of sub prime credit and no documentation loans are gone. It goes without saying, and I am sure most would agree, that is a good thing. Those programs were largely responsible for the economic climate we find ourselves in today. A lot of what you hear about mortgages being hard to obtain stems from people who have tried to refinance their homes but have had a hard time due to a decline in equity and home values, not from those looking to buy.

Applying for a mortgage today certainly involves more scrutiny than five years ago but again, if you have verifiable income, credit scores in the mid to upper 600’s or higher, and have a little cash, there is a mortgage product that will allow you to buy a home. With the added bonus of home prices at much more affordable levels than three or four years ago, 2012 will be an opportune time to buy a new home and obtain the mortgage to purchase it.

Greg Reichman is a Mortgage Account Officer with People’s United Bank. For more information, please visit Greg’s web page or contact Greg by telephone at (203) 644-4095.

January 25th, 2012 by Greg Reichman
Categories: Buyer Information, Mortgage Information

This entry was posted on Wednesday, January 25th, 2012 at 8:59 pm and is filed under Buyer Information, Mortgage Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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