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Over half of all mortgage borrowers across the country agree that lending standards are significantly tighter than the period leading up to the housing crisis. The question is when the market returns to some semblance of normal, will standards again become ridiculously lax. It seems accepted today by both borrowers and lenders alike that a connection exists between the ability to contribute towards a down payment, having both job security and stable income and their direct relationship to creditworthiness in securing a loan. Today's lending climate is unique because interest rates are extremely low yet underwriting standards are on the extreme end of tightening. Loan-to-value, otherwise known as the mortgage amount(s) divided by the appraised value of a property, averages near 70% following a reckless sub-prime climate where borrowers could finance 100% of a property's appraised value. Today's credit scores average above a 750 FICO score and the median FICO score is around 710. Most importantly the plain-Jane/vanilla fixed rate mortgage is on top as the most popular loan requested while sub-prime products are virtually a thing of the past. A combination of better credit quality, complete loan packages, higher borrower documentation standards along with a quality appraisal all work in tandem to establish a new and improved lending environment.
Low
Rate 15 Year Mortgages Popular Refinancing Choice for Some
Could
a Shorter Term Fixed Rate Mortgage Save You Thousands in the Long Term?
FHA
'Short Refi' set to save underwater homeowners
Mortgage
Rates Stay Low, Think About Refinancing
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