now this week the mortgage rates are skyrocketting up to nearly 6%. I found a house already and our offer was

Asked by Ahtone, 11377 Thu Jun 11, 2009

accepted and so what should we do?

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6
Jason Dipers…, , Haddonfield, NJ
Thu Jun 11, 2009
Hello Ahtone,

Financing a purchase can be a tricky thing. With rates at a recent high many buyers are finding themselves in similar situations. The truth is that no one really knows what is going to happen to rates. Historically, rates tic up over the summer, so there is a possibility that things will improve in a few months, which isn't much consolation for you as a soon-to-be owner.

First, contact your lender and find out if you can still afford the house you're bidding on. Specifically, make sure that your debt-to-income ratio (DTI) is still within guidelines for the type of mortgage you've chosen. Second, consider different types of mortgages given the change in the market. While not highly recommended, sometimes 3/1 or 5/1 ARMs are a solution for a very small percentage of homeowners. FHA loans are a viable options for borrowers who cannot afford a 20% down payment and the guidelines are considerably more lenient. You'll have to pay mortgage insurance though...

The bottom line is this: if after speaking with your lender you are not comfortable with the financing or feel you are unable to meet your obligations in the long term do not buy the house. It is unfortunate, but sometimes people need to walk away. Good luck!

Kind regards,

Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
jdiperstein@emmloans.com
http://emortgagemanagement.com/?page_id=72
1 vote
Therese L Ko…, Agent, Bayside NY 11361, NY
Thu Jun 18, 2009
Hi Ahtone, Speak to your mortgage broker/banker -With rates still under 6%- those are record breaking rates-maybe not all time low but still very low. Shop around you can still get under 5.25- 5.5% if you are willing to pay a point. Just make sure you can afford the payments which will be for 30 years most likely, and keep a 4-6 month reserve for the unexpected. Terry K 718-614-3167 cell.
0 votes
Jason Dipers…, , Haddonfield, NJ
Mon Jun 15, 2009
Ahtone,

Unfortunately, none of us can accurately predict where the market will go at this point. Industry analysts are split, and anyone who gives you a definitive recommendation is misleading you. Keep in mind that in the mid-80's rates were in the 12-15% range, a rate of 6% or below now on a 30-yr. fixed is still not too bad, all things considered. Still, 4.75% would have been better so I understand your concerns.

I hope you make the best decision for your family, and good luck!

Kind regards,

Jason Diperstein
E Mortgage Management
800.793.9633 ext. 156
jdiperstein@emmloans.com
0 votes
Ahtone, Home Buyer, 11377
Mon Jun 15, 2009
thank you for all of your answers. I mean, we can still afford but monthly payment becomes $ 200-300 more monthly and so we want to know whether we should wait or not.
0 votes
Thomas McGiv…, Agent, Farmingville, NY
Thu Jun 11, 2009
i don't understand the question. Are you asking if you should lock your into a rate?
Web Reference:  http://www.tommcgiveron.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Thu Jun 11, 2009
No one knows where the interest rates will go next; if you're concerned about affordibility-- for an accurate answer to your question, you should refer it directly to your loan officer.

Anna
0 votes
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