Minnetonka Mortgage News

I don't know if you have noticed lately but rates are pretty low right now, record breaking lows for 2011.  With that being said you think we would see a pretty big increase in the mortgage and real estate industry... Well, I'm still waiting for the big rush.

With rates this good it would only make sense that people would want to be refinancing and buying homes. After all it is a buyer's market right.. There is obviously some factors that are making people not want to refinance or buy. What are these factors?

•1.      Credit Score: With a tough economy a lot of people are struggling to keep their good credit score. To take advantage of the best rates your credit score is essential. If people are struggling to pay their bills, their credit score could be taking a hit.

•2.      Down Payments: People might not have enough money to make a big down payment. I know that there are many programs out there that require a very minimal down payment, most popular is the FHA Loan, however the best programs with the best rates want a decent down payment.

•3.      Home Equity: With housing prices dropping many people are finding themselves owing more money than there house is worth, making refinancing extremely tough. Many people are having to wait till they pay more money off their loan before they can refinance.

•4.      Fear: With an uncertain economy many people don't want to spend their savings on a new home or the refinancing fees.

These are just a few reasons I have thought of. Obviously everyone has a different situation and a different solution. Yes I want my customers to be able to take advantage of these rates but at the same time if it doesn't make sense for them to do it I am not going to push them into a situation that will not work.

Thanks