Released: August 06, 2007

Home loans are harder to get

Source: Noelle Knox, USA Today

Wake-up call! If you’re ready to buy or refinance a home, the turmoil on Wall Street may be further hurting your chances of getting a loan.
In a huge sell-off Friday, investors reacted to a mortgage industry crisis not seen in decades.

Some lenders are shutting down, laying off thousands of employees and leaving buyers in the lurch. Interest rates and the terms of loan offers are changing daily. And borrowers with tarnished credit are facing deal-killing loan terms — if they can find a loan at all.

Stock investors’ wariness about the housing market spilled over Friday, driving a 281-point loss in the Dow Jones industrial average.

While poor repayment of “subprime” loans to borrowers with blemished credit is the primary concern, there are a few signs that more blue-chip borrowers are also having problems paying their mortgages.

Read Full Article: Home loans are harder to get