| Fannie label on Denver ominous
Metro Denver's designation as a "declining market" could delay any recovery in the area's long-suffering residential real-estate market, local housing experts said Tuesday. Some mortgage lenders are designating Denver and surrounding counties, excluding Boulder, as a market where prices are declining, upon instruction from Fannie Mae, which backed 41 percent of the nation's home mortgages in the third quarter. Fannie Mae is requiring a 5-percentage-point larger down payment on loans made in declining markets starting in the middle of next month. "When you look at it, it impacts everybody. If you want to sell your property, it becomes more difficult to do that," said Zachary Urban, director of housing counseling with Brothers Redevelopment. First-time buyers and others with minimal savings or equity for a down payment are likely to find themselves knocked out of the market.
While you weren't watching ... ... mortgage rates were tumbling
With long-term mortgage rates sinking to their lowest level since March 2004, it looked like one of those golden opportunities to refinance the home or condo this week.
But many who rushed out to their banker or mortgage broker discovered that it is much more difficult to borrow money than it was even a few months ago.
The real estate crisis dragging down the rest of the U.S. economy has frozen the market for many borrowers. As prices fall and lenders wallow in a sea of losses, only those with gold-plated credit ratings and ample equity in their homes are sailing through the application process, mortgage bankers said.
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Low Interest Rates Spur Mortgage Refinancing
Homes sales may get a boost when the fed's recent interest rate drop translates into mortgage rates. The cut will make it easier for many people to get into a new home and will also enable people to refinance to avoid future hardship. Several loan officers and mortgage lenders all say the same thing -- now is the time to refinance your home. But before you do, consumers need to understand the process is not cut and dry. Loan officers around the valley say more and more homeowners need to look into refinancing to take advantage of the low interest rate. Different loans can either lower your monthly payment or even shorter your term But it's not that simple. In order to refinance, you have to have decent credit and have some equity built up in your home.
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