Everybody knows that people with low credit scores, high loan-to-value ratios, and no documentation pay more for mortgages. But wouldn’t it be nice to know exactly how much more?
Hot Property is here to tell you. Countrywide Home Loans Inc. has a public website—no password required—with rate sheets for every possible combination. https://www.cwbc.com/BCrates.asp
Just use the drop-down menus to enter your state and whether the mortgage is a first-lien, second-lien, etc.
For example, let’s say it’s a first-lien mortgage in California. Take two cases.
First case: Your mortgage history puts you in the Premier Plus category, you’re putting 40% down, your credit score is 680, and you’re providing full documentation for the loan. The rate for a 2/28 ARM is 6.25%.
Second case: Your mortgage history puts you in Countrywide’s C minus category, you’re putting 30% down, your credit score is 500, and you’re providing full documentation. The rate for a 2/28 ARM is 11.9%.
The rates change frequently, of course. These are for July 3.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.