Opportunity for Borrowers Who Meet Tight Lending Guidelines

High credit scores may be more important than income when it comes to mortgage lending. This article exerpt from the Honolulu Star demonstrates the trend.
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Rates haven’t dropped enough for some. Tightening credit score standards and falling home values have eliminated others. And there’s the group that’s still waiting for rates to fall more. Some analysts have forecast further declines since Federal Reserve Chairman Ben Bernanke indicated that the Fed will provide necessary relief.

That said, anytime there is at least a half-point drop in interest rates, taking on a new loan or refinancing is worth considering, said Steve Higa, a Honolulu-based mortgage broker with Point Financial.

For those whose credit scores and loan-to-value ratios still allow them to obtain new mortgages or refinance under better terms, the gains can be substantial, Higa said.

Source: Honolulu Star