Sub-Prime rates

[iupui1299]

My wife and I will be out of our BK for one year in October. My mid score has gone from a 570 up to a 650 since March. We wanted to build a house back in March but my credit score had to be at least a 620. So I entered a credit repair service and now it is 650.....so we met with the mortgage guy today and he said that basically sub-prime rates have tanked since March. Back in March we could have gotten maybe an 8% rate now he said the rates are around 11%. (ouch) Is all this true about the sub-prime market? Thanks!

[lrprn]

Is all this true about the sub-prime market?

Yep. Here's a MSN Money article about this from yesterday - http://news.moneycentral.msn.com/pro...706&ID=7129782 (warning - lots of "financialese" to wade through)

Here's a Financial Times article from last March that's more understandable - http://www.ft.com/cms/s/8b229154-d8a...b5df10621.html

Keep saving your money and get at least 20% to put down on a house. Then the regular lenders will open up to you with better rates.

[iupui1299]

We were told that if we wait until October of 2008 we can pretty much walk into any bank and get a conventional loan at a great rate. Waiting is always the hard part. Thanks for the info.

[frankies_mom]

What if only one of you filed bankruptcy and your husband's credit is good? Would that make it any better when they look at your application? Anyone know?

[iupui1299]

I am pretty sure that as long as you put it in his name then you are good to go.

[MTG_BANKER_OH]

My wife and I will be out of our BK for one year in October. My mid score has gone from a 570 up to a 650 since March. We wanted to build a house back in March but my credit score had to be at least a 620. So I entered a credit repair service and now it is 650.....so we met with the mortgage guy today and he said that basically sub-prime rates have tanked since March. Back in March we could have gotten maybe an 8% rate now he said the rates are around 11%. (ouch) Is all this true about the sub-prime market? Thanks!

Yes the supbrime rates have shot up considerably, I have not done one in 8 months anyway, I have had to turn down a lot of business that would have otherwise been good a year ago. I think things will get better soon but there is no telling how soon

[iupui1299]

It looks to be that in order to get a decent rate we will have to put 5% down. That way we would hopefully have some equity in our home and could refinance as soon as the rates would be low enough for us to save some money on the whole deal.