Changing Mortgage market

Changing Mortgage market
Everybody knows that the mortgage market is changing, but here is a little update. Most of the banks are now doing even higher "hits" to high loan to value (LTV) loans based on credit scores. Loan to value means how much you owe compared to how much the house is worth. For example if you owe $160,000 and the house is worth $200,000 then your Loan to value (LTV) is 80%. Normally the banks give hits for anything over 80%. The higher the loan the higher the "hit" "Hits" are something most borrowers never even know about, but that is figured into how your rate is determined.
What is new in the last few months is that the lower your credit score the higher the hit. It can affect your rate up to 3/8 of a percent. Now the mortgage market is truly making a difference between good, better, and best credit scores. So it is more important than even for borrowers and consumers to keep on top of their credit.
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