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2012-07-26 11:06:17
Interest Rates are Still Low

Utah Real Estate Interest Rates are at Record Lows

graph showing declining interest rates 30-year fixed-rate mortgages remain at the lowest levels in recorded history. Utah real estate interest rates fall into the category of low interest rates for qualified borrowers. The current prime rate for a well-qualified Utah borrower currently stands at 3.52 percent. Potential borrowers in the state can take advantage of these low interest rates along with incentives currently offered by mortgage lenders to help offset any type of home equity loss. Customers who are suffering from a significant loss of equity in their home along with high interest rates on their current mortgage must apply for a refinance transaction, even if the home does not have substantial equity. 

Lender Incentives and Well-Qualified Borrowers
Some of the incentives lenders are currently offering include waiving many of the higher priced closing costs. The higher priced costs are usually the loan origination fee, the underwriting fee and settlement fee. However, borrowers who are looking to take advantage of these incentives must fall under the classification of well-qualified. A borrower’s median credit score must be 720 or higher. This score is the standard bearer throughout the mortgage industry and is the primary indicator used to determine a borrower’s potential credit worthiness. A consumer’s debt to income ratio must not exceed 38 percent. The ratio determines how much gross income is used to pay outstanding debt. The debts used to calculate the ratio include principal mortgage payments, taxes, insurance, revolving credit lines, installment loans and any outstanding collection accounts. Monthly utilities and daily expenses are not included in the calculation. 

The Outlook for Real Estate Interest Rates
The mortgage meltdown of 2008 forced lenders to change the way they qualified their customers. Lender guidelines are very strict in today’s market and most people looking for financing do not qualify for the prime rate. The outlook remains strong for interest rates to remain at record lows. Lenders do work with customers to obtain the lowest rate possible. The housing market in the state of Utah is slowly starting to recover. Low interest rates benefit all consumers, including people who do not qualify for the prime rate. 

 
Blog Archive
2012-07-26 11:06:17
Interest Rates are Still Low

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2011-03-16 02:28:21
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How a Realtor Can Make Moving to Utah Easier


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