RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

Just In: Credit Report Change Could Benefit Buyers

October 3, 2016 2:21 am


An upcoming change on credit reports could be beneficial for homebuyers.

Equifax, one of the nation’s three leading credit reporting bureaus, recently announced the addition of up to two years of debt balance and repayment history on its credit reports. The change became effective Sept. 24, 2016.

The change, Equifax stated in a release, will impart heightened understanding of creditworthiness as it relates to approval of a loan. Recent research out of Fannie Mae shows that borrowers who pay off their credit card debt every month are 60 percent less likely to become delinquent on their mortgage, compared to borrowers who only make the minimum payment. Including debt balance and repayment information in the report will give mortgage lenders deeper insight when evaluating an application, beyond assessing the applicant’s credit score.

“For nearly three decades, mortgage lenders have used the same static formula to determine whether or not someone receives a home loan,” stated Craig Crabtree, general manager of Equifax Mortgage Services, in the release. “Leveraging trended credit data to evaluate how borrowers actually manage and pay off their credit debt could have enormous potential in terms of opening up credit and providing many Americans with access to mortgage loans that they previously may not have qualified for.”

Planning to buy a home soon? Contact me today to discuss your credit and lending options.

Source: Equifax

 

Published with permission from RISMedia.


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What's Good for Homebuyers Is Good for the Housing Market

October 3, 2016 2:21 am


What’s good for homebuyers is good for the housing market.

That’s the takeaway from two recently released reports from Freddie Mac—one that confirmed mortgage rates at a 10-week low, and one that revealed two more metropolitan areas have transitioned to normal levels of housing activity. Both indicators bode well for homebuyers.

“Investors flocked to the safety of government bonds, causing the 10-year Treasury yield to continue its descent following the FOMC's decision to leave rates unchanged,” says Sean Becketti, Freddie Mac’s chief economist. “The 30-year fixed-rate mortgage responded by dropping six basis points before landing at 3.42 percent—a 10-week low.”

The average rate of the 15-year fixed mortgage also declined, down to 2.72 percent, according to Freddie Mac’s mortgage survey.

Freddie Mac’s Multi-Indicator Market Index® (MiMi®), on the other hand, showed that housing activity in Columbus, Ohio and Indianapolis, Ind. has picked up—overall, housing in 38 states (plus the District of Columbia) is at normal levels.

The metropolitan areas with the most marked improvement in housing over the last month, according to the Index, are Lakeland, Fla., Youngstown, Ohio, Chicago, Ill., Orlando, Fla. and Las Vegas, Nev.

Source: Freddie Mac
 

Published with permission from RISMedia.


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