Mortgage Lending Rates for September 2009

For the second quarter of 2009, mortgage lending rates remained below 5% (for a 30-year fixed loan). For the last couple of months, however, they have been hovering above the 5% mark. Most experts predict that lending rates will fluctuate between 5.5% and 6% for the rest of this year.

What does this mean to you, as a potential home buyer? It means that now could be an excellent time to lock in a rate for a home loan. The housing marketing has been showing signs of recovery lately, which probably means that mortgage lending rates will continue to rise over the coming months. If you're a first-time home buyer, you still have time to benefit from the $8,000 tax credit -- as long as you close by November 30th.

So if you've been planning to buy a home, and you're looking for a good sign to move forward, this could be it. Lending rates are still low, home prices are down from last year, and you could still qualify for the aforementioned tax credit.

Best Mortgage Rates are Hard to Get

The mortgage lending rates mentioned at the beginning of this article are averages. You might qualify for a better rate, or a worse rate, depending on several factors. If you want to get the lowest rates a lender has to offer, you'll probably need a credit score of 750 or above. You'll also need to make a down payment of at least 3.5% (on FHA loans) or 10% (on non-FHA mortgages).

Of course, none of this is set in stone. These are just the average qualification guidelines used by lenders in the current economy. If you want to find out if you qualify for the best mortgage lending rates available, you have to apply for a loan. You can start the application process from this page of our website.

I mentioned earlier that you'll need excellent credit to quality for the best rates a lender has to offer. So if you haven't checked your credit score in a while, you might want to start there. If you find out that your score is low, you can take the steps needed to improve it. So the sooner you can find out where you stand, the better.

Questions About the Lending Process?

Do you have a question about mortgage lending rates or how to buy a home? If so, you can send it to us. Please read the information on our Q&A page to learn more.

You can also enter your question into the search box at the top of this blog. There are literally thousands of articles and Q&A sessions on this website, so you're bound to find some helpful advice.