CNC Mortgage Blog

These are turbulent times in the mortgage industry. The Federal Reserve Bank would like to raise interest rates to control inflation but that would not be good for a sluggish economy. The slow housing market would also be negatively affected by an increase in mortgage interest rates.

There has been a restriction in available credit in general. But these problems should not have a great effect on the average borrower with acceptable credit and some equity (5%) either in their house to refinance or to put as down payment.

Jumbo loans ( over $417,000) have become more expensive and there are fewer banks interested in these loans. 30 year fixed rates on jumbos are high, it might be a time to consider a lower three year or five year arm and gambling on the drop in rates for fixed jumbos in the future.

The shrinking credit market means that you should consider using a mortgage broker rather than going to a single institution so that you can have more options available.

Have a great week.