Mortage Refinance: 71% of borrowers are eligible for a New Loan

The economic crisis continues to be slow to heal wounds, and reports of the impact on our society are seen in the media every day.

The housing market and the mortgage market seem to be the hardest hit in this put down that appears to drag on for months. While this formal situation each and every one of us in a state of depression is unable to get much of a return on interest and yet cheap debt is not available either. T

here is good news in the foreground. According to this new statistics there are a large number of borrowers who are still acceptable credit scores. In fact, 71% of the borrowers are eligible for a loan from the purchase.

As reported by Zillow, according to Fair Isaac Corporation, the creator of the FICO score have 29.3% of the current borrowers have a credit score of 620, making them any money from the borrower a purchase mortgage. Anyone with a credit score of 620 is very unlikely to be able to obtain funding. Even if this group of people had a large down payment, she would most likely not be able to obtain a mortgage.On the other hand, the good news is that 47% of the current borrowers scores above 720 and a total of 71% are able to borrow. higher credit scores have been recognized with the best mortgage refinancing interest rates available.

Thanks to the tight credit conditions and stricter underwriting guidelines, many borrowers today turned away from getting a mortgage. Years ago, turned the same borrowers to the subprime mortgage products as their sole funding option.At that time would be a lot of these same borrowers have qualified for FHA loans but chose sub-prime. in fact, prior to the introduction of sub-prime there were only FHA loans are available for this borrowers. Now, with FHAs exposure in the mortgage market so pronounced, they, too, are further tightening their lending guidelines, making it difficult for this group of people to obtain a mortgage was 29.3%.

More people have already choose clean up their credit to pay off credit cards as credit card interest rate has risen.This is a positive step in an attempt to improve their credit scores and they longer be eligible to buy a home. Although people have cut back on other expenses, while doing this and the growth of the economy has suffered, they are responsible investors.As this movement, the percentage of the borrowers credit worthy and be able to buy that increases over time.Just like it took many years for this action, unrest, it takes time to the benefits of these actions.

Although the number of borrowers who are unable to obtain a mortgage seems high, show previous studies that almost 20% of the population had FICO scores below 620 in 2002, when the unemployment rate, on average, around 5.7%. in view of the fact that we only the great recession followed by a very slow economic recovery and a very high unemployment rate, this new percentage of 29.3% not so frightening. think about the fact that 71% of the borrowers are eligible for a new home loan, things can only improve when borrowers realize that they are in this category and to take advantage of the historically low interest rates.

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