What does it mean?

gmakerley · Posted: Mon Feb 25, 2008 11:39 am Post subject:

interest rates for fha loans and conforming loans (those sold to fannie mae and freddie mac) are pretty much the same these days. however, because those other 2 agencies have changed their requirements to take credit scores into consideration, the pricing on these loans (points, fees, etc.) have become more prohibitive.

for example, if your credit score was 660 (not so bad a score, really) and you wanted to buy a home for $250000 and borrow $200000 (20% down), you might get an fha rate of 6% with 2 points. a comparable scenario using a conforming loan (fnma) would be 6% with at least 3 points (and that's not adding in a penalty for the score).

any borrower with a score of 585 or higher can qualify for an fha loan that will be better priced than a conforming loan. as soon as your score dips below 680, you are penalized by fnma/fhlmc.

boy, i know this had some odd phrasing here, but i hope it made some sense. each loan is going to be structured a little differently, and there are plenty of other variables that come into consideration.

i hope this was helpful, though, patricia.

livinginnky · Posted: Mon Feb 25, 2008 2:26 pm Post subject:

Not all markets are bad. In Kentucky the average selling price actually went up around 5% from last year. Not every market is failing, but some are that is for sure.

0.10 Dollars($)

that's certainly good news, eric. connecticut has been pretty stable also, though we've certainly seen some dips...and there is a mountain of listings in some of the lower price ranges. building permits and starts are down quite a bit too, but thats also good because it shows that the builders are getting smart and not doing too much spec work.

gmakerley · Posted: Mon Feb 25, 2008 3:05 pm Post subject:

that was me above...i may as well get credit for saying what i said, huh?

that's certainly good news, eric. connecticut has been pretty stable also, though we've certainly seen some dips...and there is a mountain of listings in some of the lower price ranges. building permits and starts are down quite a bit too, but thats also good because it shows that the builders are getting smart and not doing too much spec work.

livinginnky · Posted: Mon Feb 25, 2008 3:37 pm Post subject:

Yes that is what I thought. Good news, we need more of it.

Plus think how good it has been for conforming borrowers lately.

0.10 Dollars($)

but oh so much better for fha borrowers with reduced credit scores!

gmakerley · Posted: Mon Feb 25, 2008 3:41 pm Post subject:

me, again, of course up there ^

gmakerley · Posted: Mon Feb 25, 2008 3:42 pm Post subject:

and, now, out for the evening - see yall later

patricia · Joined: 16 Jan 2008 Posts: 133 0.92 Dollars($)

I heard that the ir is going up already. My hubby is self employed and talking about going into another line of work.He does contruction mainly drywall.There has been none for a few weeks now just small repairs. It worries me since he tends to borrow when he gets into bind and I am the more penny pincher of us 2.I have one weekness though thats when the kids need things or THINK they need things. Thats what i spend mot of my money here on .Anyway his work is very slow right now which his brother does the same work and also our son.

gmakerley · Posted: Tue Feb 26, 2008 12:14 pm Post subject:

maybe you need to put the kids to work, patricia!
Wink

patricia · Joined: 16 Jan 2008 Posts: 133 0.92 Dollars($)

fat chance of that happening! Rolling Eyes

What happened above did you keep getting signed out?

gmakerley · Posted: Wed Feb 27, 2008 8:22 am Post subject:

no...just neglected to sign in before i posted. you know how you get the notifications that there is a response to a post? well, i sometimes just click on that notification and respond, then realize that i neglected to login.

oh well

patricia · Joined: 16 Jan 2008 Posts: 133 0.92 Dollars($)

OH Wow! Thas what I do also. Sometimes i go into the forum and see if there are any new threads to respond to but mostly I just use the ones that come into my email. Yes, I have forgot to sign in make me mad. But also i have signed in and it will sign me out again.

gmakerley · Posted: Wed Feb 27, 2008 10:03 am Post subject:

yeah...if you are idle long enough you will get bumped off sometimes...it almost happened to me right here, because i have had about 5 phone calls since i started writing this!

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