GOOD NEWS IN FACE OF MORTGAGE PROBLEMS
In all parts of the country, including Augusta GA, we hear about mortgage banking organizations closing and mortgage products being eliminated. This economic downturn is mostly the result of the relaxed credit activity of subprime lenders over the last six years. The interest rates on these subprime loans are now adjusting to higher rates, making them unaffordable to many investors and homeowners, and causing delinquent mortgage payments and home foreclosures. Borrowers with good credit, however, are having no difficulty in making their mortgage payments, and new mortgages are available to them today just as they were a year ago. Fannie/Freddie/FHA/and VA mortgages are fully available, underwriting is unchanged, and funding for closing as reliable as ever. Subprime loans are still available, but they are more difficult to find and their rates and terms have toughened up.
The rising inventories of unsold homes are benefiting today’s home buyers. They have more homes to choose from and mortgage financing with historic low rates is available for buyers with good credit histories.