CitiMortgage CEO talks about record low mortgage rates

By Kathleen Berger

St. Louis, MO (KSDK) -- Fixed mortgage rates fall to record lows and that could be good news for potential homebuyers or those looking to refinance.

NewsChannel 5 sat down with Sanjiv Das, the Chief Executive Officer of CitiMortgage, to find out what you need to know. Das says now may be the time to act for St. Louisans looking to buy a home or refinance a mortgage, but not everyone's qualifying.

For the fifth time in six weeks, mortgage rates fall to record lows. The last time rates were lower was the 1950s. The average 30-year fixed rate dropping to just over 4.5 percent. While many want to refinance, Das says qualifying is tougher these days.

Homeowners may not have extra money for closing costs. Or they no longer have the credit score or the home value they once had.

"Let's say their credit score, for whatever reason, went down to 600 and the price of their home dropped substantially. While they once had a 70 percent loan to value ratio, let's say it's now 110 percent, so they have no equity in their home," said Das.

Das says that scenario is increasingly common because of depreciating home values and unemployment in recent years. He adds the tragedy in all of this is that many people just can't take advantage of falling rates.