To help offset the sluggish market, lenders have reduced mortgage rates during the past month, said Tammy L. Rowe, president and mortgage broker for West Virginia Five Star Mortgage Corp. in Charleston."Rates have been falling for the last five weeks," she said."(Lenders) want to lower the rates to get people interested in buying again."For Rowe, August has been a slow month, she said.She does not expect that will continue much longer.This week, the interest rate on a 30-year fixed mortgage was 6.2 percent, she said.The rate on a 10- or 15-year fixed rate loan was 5.75 percent."This is the calm before the storm," Rowe said."When the 30year fixed rate drops below 6 percent, we'll see a huge purchasing market start."Rowe said she expects the 30-year rate to drop to 6 percent sometime next week.West Virginia is not the only place contending with high home prices and sluggish sales, Rowe said."It's a national problem," she said."It's not just locally."Rowe said the Federal National Mortgage Association and Freddie Mac, the county's two largest mortgage providers, both have experienced declines in earnings recently."They know people just can't save that much anymore," Rowe said.RefinancingBesides new homebuyers, declining mortgage rates also provide existing owners with the opportunity to refinance, Rowe said."The main purpose that people want to refinance is debt consolidation," Rowe said."A lot of people have run up their credit cards on summer vacation and have had to pay school tuition."Refinancing can lead to a lower interest rate and more available cash, she said.Those who opted for a one-or fiveyear adjustable rate mortgage a few years ago when interest rates were lower have been hit hard in recent months as rates rose, she said.Now they have the opportunity to refinance with a 30-year fixed mortgage to lock in the lower interest rates, she said."With an (adjustable rate mortgage), you're playing the market," Rowe said.Buyers often chose adjustable rate mortgages for two reasons: First, some do not plan to live in the home they are purchasing for long, Rowe said.They envision moving to a larger house within three to five years.Second, because of credit score problems, some do not qualify for the longer-term loans, she said."It gets their foot in the door," she said."It gets the home purchased....We can refinance in six months for a fixedrate mortgage."Getting Ready to BuyAlthough some lenders have eased credit requirements, higher credit scores still can mean better rates, Rowe said.She recommends obtaining a credit history report from Equifax, TransUnion or Experian and keeping track of it regularly."You can get them online for free," she said.

To help offset the sluggish market, lenders have reduced mortgage rates during the past month, said Tammy L. Rowe, president and mortgage broker for West Virginia Five Star Mortgage Corp. in Charleston "Rates have been falling for the last five weeks," she said."(Lenders) want to lower the rates to get people interested in buying again." For Rowe, August has been a slow month, she said.She does not expect that will continue much longer.This week, the interest rate on a 30-year fixed mortgage was 6.2 percent, she said.The rate on a 10- or 15-year fixed rate loan was 5.75 percent. "This is the calm before the storm," Rowe said."When the 30-year fixed rate drops below 6 percent, we'll see a huge purchasing market start." Rowe said she expects the 30-year rate to drop to 6 percent sometime next week. West Virginia is not the only place contending with high home prices and sluggish sales, Rowe said. "It's a national problem," she said."It's not just locally." Rowe said the Federal National Mortgage Association and Freddie Mac, the county's two largest mortgage providers, both have experienced declines in earnings recently. "They know people just can't save that much anymore," Rowe said. Refinancing Besides new homebuyers, declining mortgage rates also provide existing owners with the opportunity to refinance, Rowe said. "The main purpose that people want to refinance is debt consolidation," Rowe said."A lot of people have run up their credit cards on summer vacation and have had to pay school tuition." Refinancing can lead to a lower interest rate and more available cash, she said.Those who opted for a one- or five-year adjustable rate mortgage a few years ago when interest rates were lower have been hit hard in recent months as rates rose, she said.Now they have the opportunity to refinance with a 30-year fixed mortgage to lock in the lower interest rates, she said. "With an (adjustable rate mortgage), you're playing the market," Rowe said. Buyers often chose adjustable rate mortgages for two reasons: First, some do not plan to live in the home they are purchasing for long, Rowe said.They envision moving to a larger house within three to five years.Second, because of credit score problems, some do not qualify for the longer-term loans, she said. "It gets their foot in the door," she said."It gets the home purchased. ...We can refinance in six months for a fixed-rate mortgage." Getting Ready to Buy Although some lenders have eased credit requirements, higher credit scores still can mean better rates, Rowe said.She recommends obtaining a credit history report from Equifax, TransUnion or Experian and keeping track of it regularly. "You can get them online for free," she said.

Online loan applications are changing the face of the lending industry, said Tammy L. Rowe, president and owner of West Virginia Five Star Mortgage Corp. in Charleston. "They can fax me their W-2s, bank statements and pay stubs," she said.It is possible for a homebuyer to obtain a mortgage from Rowe and never meet her face to face, although that is not the way she likes to do business. "I always like to meet my customers," she said."I mail out the loan disclosure through e-mail, but I like to pick them up (in person)." Often, that is the only time she meets her clients, however. "I never attend the closing," she said.Offering complete services online has worked well for Rowe the past couple of years.For several years, she paid high rent for office space on Kanawha Boulevard.Now she works from home -- a concept she believes benefits her clients and her family.Through the Internet, she is able to keep in touch with clients throughout the day and spend time with her children. The lending industry is changing to become more suited for Internet-based businesses like hers, Rowe said.For example, today, in lieu of an appraisal, lenders will allow a property report, she said.They are based on tax records and can be completed online.And they cost $100, while most appraisals run $300 to $375, she said. "The reason (for property reports) is because there has been so much predatory lending with inflated appraisals," she said.

Online loan applications are changing the face of the lending industry, said Tammy L. Rowe, president and owner of West Virginia Five Star Mortgage Corp. in Charleston."They can fax me their W-2s, bank statements and pay stubs," she said.