Mortgage Rates Report

"It was the best of times, it was the worst of times"- Charles Dickens

Wall Street has spoken.  They now say that stated income and no documentation loans are risky.  And they want to get paid for that risk.    Think of Wall Street as a life insurance company.  Insurance companies have two different premium rates for smokers and non-smokers.  Smokers are more risky to the insurance company and are charged more premium to compensate the insurance company for that added risk.  Stated income loans are to Wall Street what smokers are to insurance companies.

The mortgage markets have faced and will endure a liquidity crisis. It won't affect you if you are applying for a full-documentation loan .  Basically, if you can't prove that you can make the payments, you won't be getting a free pass anymore.  It's 1999 all over again and that ain't all that bad.

Real opportunity will be available for a borrower with good credit and verified income.  Zero down payment loans will still be available for those borrowers; it won't be for borrowers who have severe credit problems and can't provide proof of the ability to repay the loan.

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