17 Aug 2007 07:24 am
Home Buyers More Conservative In Their Borrowing Habits
| A tighter mortgage environment and tougher credit standards are forcing buyers toward more conservative home loans, according to economists who study the mortgage industry. Home buyers and homeowners who want to refinance are moving away from shorter-term adjustable rate loans. For conservative borrowers, the chance that the payment could increase beyond their comfort level is a very real and unwelcome possibility. They prefer the certainty of a fixed-rate 15- or 30-year mortgages. For buyers intent on getting the smallest possible monthly payment, adjustable rates are no longer automatically the ideal. Payments can go up and the ability to refinance in a few years is not a sure thing. |
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