So you think you have it Tough?

So you think we have it tough now, take a look at this. This was lifted off the front page of the Charlotte Observer on March 30, 1980. My associate Jackie Stutts bought her first house in closing months in 1980. Considering where the interest rates had been earlier in the year, we were more than thrilled when rates dropped below 12% and we got our first mortgage at the bargain basement rate of 11.75% for a 30 year fixed rate with a 10% down payment. We thought we had made the coup of the century and we felt good about what we had done. Rates would never be that low again.
Today's interest rates are at the lowest level that they have been in years. If you are waiting for rates to drop another 0.125% before locking your loan, take a quick look back at 1980 for a reality check and think of just how lucky we are to have rates consistently below the 6.0% level.
Requirements to get approved for a home mortgage have tightened up quite a bit over the past year but these adjustments get us back to the 1980's. The article talks about loans requiring 10% and 20% down payment. A down payment. What a novel idea. There is absolutely no mention in the Observer article of 100% financing. Can you believe it? Actually having a true investment in your home in order to buy it. Wow, what a concept to be invested into your home.
Yes, requirements have tightened up some but with a good credit score, a little money for a down payment (only 3.5% for FHA loans but this is going up so HURRY) and a job in hand there is plenty of financing out there for a home mortgage for you.
Don't get too bogged down focusing on waiting for rates to drop another 0.125%. If you are happy with your interest rate and comfortable with your monthly mortgage payment, you might want to consider locking in your rate while you can. You just never know (as this article shows us) when rates will move in the wrong direction for you.