Rates are near rock bottom again.............but not for everybody.
Prior to the mortgage crisis, a credit score of over 700 would get you the lowest rate available. Now for FNMA/FMAC conventional mortgages at 80% loan to value, if your score is below 720 your rate is typically higher by .25% . If your score is below 660 then your rate is typically .75% higher. To illustrate how this has changed the face of mortgages industry take a look at this statistic:
During the years between 2003 through 2007, an average of only 3.7% of Fannie Mae Mortgages had credit scores of 750 or greater. So far this year 79.1% of Fannie Mae mortgages have credit scores of over 750. with only 20.9% below 750. This trend may bode well for the strength of the Fannie Mae/FMAC portfolio going forward, once the large number of existing troubled loans are slowly reduced over time.
It also shows how critical it is for one to have not only good credit, but outstanding credit if you want the best rates available.
From Wall St. Journal article 7/10/11 with source of data from RBS http://online.wsj.com/article/SB10001424052702303544604576436331698560662.html?mod=WSJ_RealEstate_LeftTopNews
Call Jonathan Rodd, Mortgage Advisor with Century 21 Mortgage in Vermont. Call for free pre-approval: 802-683-0812