Although the mortgage rates are almost lowest than ever, but lenders are continuously making it harder for borrowers to get a home loan.

According to the Bankrate.com national survey of large lenders, the benchmark 30-year fixed-rate mortgage fell 16 basis points, to 5.19 percent. In this week’s survey, the mortgages had an average total of 0.38 discount and origination points, whereas the mortgage index was 6.39 percent one year ago, and four weeks back, it was 5.32 percent.

The benchmark 15-year fixed-rate mortgage reached 4.61 percent after falling 11 basis points.

Since Bankrate’s April 15 survey, the 30-year fixed hasn’t been this low. In the 24-year history of Bankrate’s weekly survey, the all-time low was 5.13 percent, which was on April 1 this year.

The mortgage financing giants, Fannie Mae and Freddie Mac, have tightened the lending standards over time in several ways, since two years. They imposed risk-based pricing by charging fees on loans in case of certain circumstances, such as charging 3 percent of the loan amount for making a down payment of less than 25 percent while having a credit score below 660.

Many other reforms have also been done including the ‘trailing second wage earner’ rule. According to this rule, if you move to take a new job and your spouse or partner hasn’t yet found a job, you cannot apply for a mortgage based on the co-applicant’s anticipated income. Many lenders already have stopped including anticipated income, anyway.

You might also like

California 30 Year Fixed Mortgage Rate at 4.75%. Two weeks ago California mortgage rates hit a new all time record low of 4.5% on a 30 year fixed mortgage....

U.S. Fixed Mortgage Rates Rise from Record Lows Home funding company Freddie Mac said on Thursday that in the past week U.S. fixed home loan rates were...

US Mortgage Rates Drop to Record Low of 4.71% There is a record drop in mortgage rates for fixed 30-year loans, among signs that the housing market...

Ways To Negotiate Low Closing Costs When the cost of a particular thing is low then it becomes easy to sell or purchase that thing. The same...

Home Mortgage Loan Rates – Are Interest Rates Falling Below 5%? Over the last few weeks we have seen quite stability in home mortgage loan rates. Basically we have seen...

People who liked this Post also read

• 0% Down Payment Era Has Come to an End
  The facility of zero percent down payments for homes virtually does not exist anymore. In the nine major cities of U.S, the banks have increased the rate of down payment by 22%. This has declined the interest of people to acquire home loan. This has also ...
• FACTS to Know about Home Loan Modification Program
  If you are a financially troubled mortgage holder and find it is difficult to pay off your mortgage payments then you can take help from a home loan modification program. There are certain important facts about this programs which you should be aware of....
• How to Find a Foreclosure Specialist
  Foreclosure is the legal option that is normally used by mortgagee, if the mortgagor crosses the stipulated time in agreement and is unable to make payment. Hence, the house owner tries to find the services of some foreclosure specialist to assist him in ...
• How to Get Out From Under The Payday Loan Trap
  The foremost thing that you can do to avoid this payback mess is, don’t apply for a loan in case of financial need. Think of some other alternatives. Apply for the loan in case if you find nothing else. Then follow some tips to get rid of it as soon as po...
• Fixed Rate Mortgages: How Fixed Rate Mortgages Work?
  Fixed rate mortgages are a good deal for borrowers as they offer fixed interest rates and hence fixed monthly payments throughout the course of loan payment. Lenders may charge high payments to be sure they do not lose their profits as the interest rates ...