Securing a mortgage is more difficult, the MBA finds: These refinancing options can make things easier


Credit for mortgage is getting harder, but some mortgage refinancing programs are facing this trend. (iStock)

Securing a mortgage is becoming more and more challenging as mortgage credit drops, according to new data from the Mortgage Bankers Association (MBA).

Mortgage loan availability fell to its lowest level since June 2020 in June, the first decline since half-year growth MBA Data Analysis From Ellie May’s Allreg’s Market Clarity Business Information Tool. Reducing credit means borrowers with a less-than-perfect credit profile can find it more difficult to get a mortgage.

When lenders tighten standards, they reduce their risk and give customers higher credit scores, returns, or fewer credits already in their name.

While lenders are growing more cautious, there are some mortgage repayment programs that cater to low-income home owners. Visit Credible to compare your mortgage refinancing options with multiple mortgage lenders at once and save money on your monthly payments.

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New options make mortgage refinancing available

In the first half of 2020, when the coronavirus epidemic began to catch on, lenders became more conservative and began to take less risks in lending. The level of risk they are taking now Away Less According to data from the Urban Institute, above the average risk amount.

“The overall credit availability index is at its lowest level in 2014, as mortgage lending has not recovered from the sharp decline in the first half of 2020,” said Joel Kahn, MBA associate vice president for financial and industry forecasting. “We’ve seen the addition of refinancing programs designed to reduce costs for low-income borrowers, but the full impact of those new lending programs remains to be seen.”

Earlier this summer, the Federal Housing Finance Agency (FHFA) announced New refinancing options For low-income borrowers. Available from any lender that creates Fannie Mae and Freddie Mac-backed loans, this option is expected to save borrowers $ 100 to $ 250 in their monthly payments.

If you’re interested in seeing how much you can save on your monthly mortgage payments by refinancing your loan amount, visit Credible to find out your personal annual percentage rate in minutes.

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What is the best refinancing rate?

As mortgage loan availability decreases, poor credit holders are affected because they are unable to qualify for a mortgage, or their home loan has a higher interest rate. Average interest rates for mortgage loans vary daily; What is considered a reasonable rate today is completely different than the five-year past or last year’s best rate.

Currently, the average 30-year fixed rate mortgage has a repurchase rate of 2.88%, while the 15-year average is 2.19% Freddie Mac data. Mortgage rates below 3% are considered extremely low, and currently, rates are well above their all-time lows. Other options, such as adjustable-rate mortgages, have lower interest rates, but can increase rates and mortgage payments once the original loan expires.

However, interest rates are expected to rise by the end of this year. If you want to take advantage of lower rates by refinancing your current mortgage, visit Credible to get proactive in minutes without affecting your credit score.

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