Archive for mortgage arrears
Sep
02
Refinance Mortgage: The Cost Of Doing Business
Posted by: | CommentsThere is always a possibility of getting a no-cost refinance. Mortgage rates being what they are, this is, of course, a very welcome option. But lenders are in business to make money. Keep this in mind when you are trying to get a refinance. Mortgage problems make your entire fiscal situation even worse if not properly managed.
If your creditor is not earning income by charging direct costs for the loan, those fees will be integrated into the loan or you will be paying through an interest rate that is higher than normal. It is true that some banks offer true no-cost loans but not a lot of them do. Make sure you read your agreement thoroughly. You can get a Good Faith Estimate. When you do, ask the lender to guarantee it. Legally, Good Faith Estimates do not have to be guaranteed. This makes them almost worthless. However, lenders will guarantee these estimates if they do business with you.
It is a complex thing to seek refinance. Mortgage transactions have many costs attached. These include, loan discount points, processing costs, administration costs, application costs, and many others. Lender charges can be negotiated by the borrower. Some of them can even be waived. A Yield Spread Premium is the money that banks give to mortgage brokers for bringing your loan. Ask about this beforehand as you might have received a lower interest rate if the lender did not pay the broker a Yield Spread Premium.
What Is The Downside?
The bad things about a refinance? Mortgage refinance fees you pay to acquire the loan for one thing. You might not recoup these fees for a number of years. Another is the extension of the amortization period. You may be qualified to shorten it but you simply may not want to pay more each month. Also, a mortgage refinance makes the entire mortgage just that much bigger. The position of your equity will be affected by the refinance. Mortgage will increase if you take out the refinance in cash
Bill payment is something people do with a refinance. Mortgage payment is not the priority for them. They also use the cash to pay off credit cards. This is not a wise course of action. You will only dig yourself deeper into debt.
And The Upside?
Sticking with the home long enough will help you break even on the cost of the mortgage refinance. Lower interest rates and monthly payments will greatly improve your cash flow. You can also shorten your loan period in exchange for higher mortgage payments. Finally, the cash you obtain can help you in another investment. You just have to make sure the rate of return is higher than your interest payments.
Clearly, there is a lot to learn about mortgage refinance. A lot of it depends on your particular situation. As with most things, seeking professional advice will yield better results. Make sure that the counselor understands your situation and what you intend to do with the refinance.
Repossession
Aug
27
The Poor Credit Mortgage Market
Posted by: | CommentsPoor credit mortgages are for those people who have a bad credit history, maybe showing defaults, mortgage arrears, bankrupt, county court judgements (CCJs) or other problem debts.
Current estimates are that one in four people, or five million households in the UK, come across problems when trying to get a mortgage or remortgage because they’re suffering from poor credit history. This poor credit mortgage market is also known as the sub-prime market.
Despite recent problems in the sub-prime market there are still a good number of lenders who offer mortgages for people with a poor credit history and mortgage advisors can help you locate the right adverse credit mortgage for your situation.
Every mortgage application will mean a check by the lender with a credit reference agency such as Experian or Equifax to determine your creditworthiness. If the search reveals any problems, you will have a poor rating or low credit score and as a consequence would have problems getting a mortgage with a high street lender. However there is a wide range of Poor credit mortgages which are designed for people who have blemished credit records.
The main reason people fall into the sub-prime category is because they have suffered previous credit difficulties and consequently have a bad credit rating. However, a bad credit rating does not necessarily mean you have done anything wrong in the past. For example, divorce and redundancy can account for some of the reasons why people get into financial difficulty through no fault of their own.
In addition, in a culture of borrowing and consumer credit as we now have, there are times when people take on too much debt and can find themselves struggling to make repayments.
Would-be borrowers who have no credit history at all, individuals who do not appear on the electoral roll, and people who have moved a lot of times in a short space of time can also find themselves categorised as a non standard borrower.
The sub-prime market rose by 28% during 2006, making it worth £24.6bn. Previous research suggested that the market would continue to expand, and faster than the regular mortgage market. This is as a result of levels of debt in Britain, which are at their highest ever level and still increasing, and more difficult circumstances such higher interest rates on mortgages. However, some companies are finding it difficult to stay in the market. Northern Rock has all but been lost, and it is forecast that others may follow.
It is likely that the economy will become trickier in the next year or two. This, together with high levels of debt will help to push the sub-prime market forward in the next five years. As more people default or make late payments, more will become poor credit mortgage candidates.
Specialist poor credit mortgage providers give options to obtain a mortgage, rehabilitate finances and improve future credit ratings. There are still plenty of lenders in this sector including global investment banks and specialist arms of high street banks who underwrite a broad spectrum of cases, from people with minor financial misdemeanours to those with heavy adverse credit.
Repossession
Aug
26
Real Estate Financing - Home Mortgages - Time Tested Tips
Posted by: | CommentsYou don’t want to jump into anything blindly or sign a real estate contract or home mortgage loan contract or any type of contract without giving it some serious thought. Watch out for anything that appears to be vague. You want to keep in mind when financing real estate that lenders will be able to tell you only what you might be able to afford based on your current not future salary and level of debt including your credit card debt. First of all you’ll need to find a lender for your real estate financing and potential residential, home or other type of investment.
The real estate financing situation for each buyer is going to be different of course. A 20-year fixed rate mortgage term will mean higher payments, when compared to a 30-year fixed-rate mortgage. The advantages of a fixed-rate mortgage include consistent principal and interest payments, which will make this loan stable - your rate won’t change; a good choice if you’re likely to stay in the house for a long time.
And if you have less-than-perfect credit or a ‘bad credit’ credit report don’t be too concerned about it. The disadvantages of an adjustable rate mortgage include the possibility of increasing monthly payments if interest rates go up and over the years this has happened many times and people have lost their homes. If you’ve applied to several lenders, when you finally do select a good lender you may have to explain why there are other inquiries from lending institutions on your credit report.
The disadvantages of a fixed-rate mortgage include the possibly higher cost. These loans are usually priced higher than an adjustable-rate mortgage. With adjustable rate mortgages the initial interest rate is usually lower than with a fixed-rate mortgage so the monthly payment would also be lower. An adjustable rate mortgage could be a good choice because on the average, most people move or refinance within seven years, but be aware of the fluctuating interest rate.
If the rates in the current market are high, you’ll probably get a better price with an adjustable-rate loan. Any money you receive from a lending institution will show up on your credit report and your payments will factor into your debt-to-income ratio. And a good or bad FICO credit score is not a requirement for most conventional or government loans like FHA loans or VA loans.
Reminder - an adjustable-rate mortgage (called ARM) means that the interest rate changes over the life of the loan, according to the terms specified ahead of time. Your income and debts will typically play the biggest roles in determining what price range you can afford when buying a house. Insiders know that the advertised mortgage rates you find are not always what you’ll get from the lender - it could be fluctuations in the market, good or bad economic news, any other of a dozen reasons, but interest rates can change even throughout the day.
A range of mortgage options are always available and some loans require little money down. And if you’re on a fixed income, an adjustable rate mortgage, especially a short-term ARM, may not be your best choice.
Keep in mind that low credit scores do not mean you cannot buy a home or other real property; continue to explore the options and you’ll come up with the best real estate financing. Ask other homeowners what real estate and mortgage problems they’ve encountered - everyone has stories to tell. Rates can change fast, one way or another, day by day; this is true for residential, commercial and investment real estate financing. Always get the most current interest rate quotes. The rate won’t last long.
Repossession
Aug
14
Having Trouble Paying Your Mortgage? You Need To Act Now
Posted by: | CommentsTaking out a mortgage or a debt consolidation loan, should not be taken lightly. If you rent a home, you are a tenant, if you do not pay your rent., the landlord can evict you. If you own your own home, the company who holds the mortgage or loan can also evict you if you fail to make the payments. The big difference is of course that if you rent, and you are evicted you just have to find another place to rent.
If you are a homeowner, the consequences can be far more severe. You could loose your deposit that you originally put down on the house. As well as the lot of the equity that you have built up and a large part of any improvements like a new kitchen or extension that you have paid for.
Once you start down the repossession road with a mortgage holder that has a lien on your home. It can be incredibly difficult and expensive to avoid an impending repossession order.
The best way to deal with this kind of circumstance is to not get yourself into that position in the first place. You need to stick to your agreement with the when the as best as you possibly can.
When taking out a mortgage or a debt consolidation loan you must seriously consider if you can afford the monthly repayments. You must not only consider if you can afford the payments now, but also, if the payments go up because of interest rate rises, will you still be able to pay what is owed each month?
A good mortgage broker will be able to calculate how much you will have to pay if the mortgage interest rate goes up by a certain amount. It is very important that you don’t assume the mortgage payment will always be the same, in these difficult financial times. It is quite possible for your mortgage payments to increase considerably.
For example, if your income were 1000 per month, and you took out a mortgage that cost 500 per month. You will probably struggle to make those payments. When you took out your mortgage you wisely decided that 300 per month was what you could afford. Nevertheless, what happens if interest rates increase over two years, and raise your mortgage payments to 400 a month. Can you still make that payment comfortably? Or will it prove too much to handle? This is what can happen with mortgage payments, that is why you need your broker to calculate what the mortgage could possibly go up too, that way you can decide still be able for your monthly payments.
If you get into difficulties do not bury in your head in the sand, you must take action as soon as you feel you are getting into difficulty. There are some options available that could get you out of difficulty. You may consider changing your home loan to a different type of mortgage that may be more suitable for your changed circumstances.
An interest only mortgage can be a great to help you out for a long period of time. Perhaps several years, while your circumstances change. Interest only mortgages are considerably less expensive per month than regular mortgages.
Of course, you are not paying off any of the money that you owe, on the other hand, you are holding on to your home and everything that you put into it financially and otherwise.
A few years from now the rates may go down and you may have a promotion at work that allows you to again convert back to a regular type of mortgage.
Another option is to take out a pension mortgage; this is similar to an interest only mortgage. Except when the mortgage reaches its end, the amount that is still owed can be paid off using part of your pension contributions. You should keep in mind that your employer probably contributes a significant amount to your pension, so will be in effect, helping to pay off your mortgage.
A very similar interest-free mortgage system is the endowment mortgage. Like the pension mortgage, you pay only interest on your mortgage, then at the end of the mortgage term. Your endowment, life insurance will pay off the money that is still owed the mortgage company.
These can be good options should you find yourself in financial difficulties and are having problems paying any kind of monthly mortgage. However, as stated earlier you must not wait until the bailiffs are knocking at the door. As soon as you think, you are having problems contact a qualified online broker, who can help you with quality advice as to the best way to deal with your mortgage problems.
Repossession
Aug
12
How Do You Know if You Have a Good Mortgage Broker?
Posted by: | Comments1. He’s fast, but thorough.
a. Does your mortgage broker contact you in a timely fashion with detailed reports and requests, informing you that he just got the request in from the lender?
b. Or does he sit on the lender request for a few days before contacting you? When you provide the information the mortgage broker requested from you, does he review it with you while you are there to confirm that it is everything he needs?
c. Or does he set your information aside to look at later, possibly resulting in yet another request from you to get the missing item? If he does not operate with speed and thoroughness, speak to him about this. Let your mortgage broker know that sometimes his requests will take you time to compile or prepare for him, and that you cannot do your part well if he does not do his part with speed and thoroughness.
2. He’s efficient.
a. You’ve been to his office. The mortgage broker has a well organized office, with clean and professional staff. (Of course this only applies if the mortgage broker is not an independent rep with no staff).
b. They are all working and there are no serious signs of disorganization. The phones are active and there is life to the office. If you see this, what you are looking at is an efficient mortgage broker who keeps things moving in his office and has built a good relationship with people who need loans and the lenders who provide them. If you don’t see this, although he may be efficient on some level, he may not have the efficiency that you need overall to get your job done. Watch the signs carefully. You need your mortgage broker operating at maximum efficiency.
3. He listens and solves problems.
a. Did your mortgage broker hear you when you said that you would not be able to provide certain documents that he asked for and come up with a solution of how this problem could be solved? Was his solution an actual solution that you could utilize to keep your loan moving forward? If no, then you’ve got a problem. He is not listening. He is not solving problems.
b. Did your mortgage broker clearly hear and understand the problem the lender had and put forward a solution to the lender that both you and the lender could utilize? If no, you’ve got a problem.
4. He does not try to put you into a loan that you cannot afford.
a. You’ve given him all the info he needs to correctly determine a loan amount that you can afford, and an interest rate that you can afford, yet the numbers the mortgage broker brings back to you are above what you can afford. Walk away and find a better mortgage broker. Don’t be one of the thousands of Americans that got in over their heads and lost their homes.
Rent Back
Aug
01
Mortgage Broker Marketing - Sell Problems, Not Solutions
Posted by: | CommentsYou’re in the relationship business and that changes your marketing strategy on how to attract Realtors® as clients.
Are your marketing messages to Realtors® guilty of these promises?
- To render great customer service… - To close loans on time… - To offer the best competitive rates… - To help them make more money… - To deliver referrals or free leads… - To co-market services… - To qualify all buyers through a diversity of programs…
Guess what…Realtors® have heard this before. So much so, that they’ve become immune to listening. Your message is competing with other similar messages and getting lost in the noise. If you can’t cut through the noise and stand out from competitors than you’re invisible.
To stand out, learn their language
You don’t like hearing static during your favorite song played on the radio, why put real estate agents through that same pain. When you’re engaged in conversation with agents talking about closing loans on time, returning calls promptly, keeping clients informed about their loan application that’s like static beating on their eardrums.
Instead of speaking Swahili, you need to speak their language. If you listened to a professional conversation between two realtors, what would you hear? They’ll talk about listings, sales, commissions, referrals, open houses, marketing, policies that affect them, etc. In other words, they’ll talk about real estate, not about mortgages. Why? Because that’s their business.
To stand out, understand their problems
Today, mortgages are a commodity, there’s a mortgage guy on every corner. If an agent needs a loan officer, they can step outside their office door and have several choices within a city block.
But agents don’t want a loan officer - they want someone who can help solve their problems. Reflect back for a moment on the conversation between two agents and you’ll also hear them bicker about problems they can’t solve.
“Builders are capping my commissions…” “There’s not enough inventory…” “Sellers want me to reduce my commission rate…” “I’m getting contracts on properties the night before the open house…” “Investors are submitting ridiculous and embarrassing offers…” “There’s twice as many realtors farming my area this year…” “My marketing isn’t as effective as it used to be…” “My buyers dumped me for another realtor…” “I’m averaging only one sale a month…” “I have very little repeat or referral business.” “I lost my listing to the competition…” “My open houses produce little traffic and few good leads…”
If you want to stand out, understand their problems and facilitate solutions that solve them.
To stand out, describe problems - not solutions
With a solution in hand, you’re ready to market a powerful message that’ll get heard - the problem. Agents are more likely to listen if your message describes a problem, instead of the solution.
Think about this - your message communicates competency. Competency shows you understand the problem. Your message communicates - caring - because many agents don’t believe loan officers care about them. Finally, your message communicates - potential - which stirs an agent’s curiosity to learn more about your solution.
Their curiosity is what will spark their level of interest forward. You realize with more opportunities for one-to-one interactions, the more familiarity and trust can develop. Two key ingredients to successfully attracting the relationships you want.
To stand out, get noticed through associated channels
Part of your marketing plan should include points of contact that your prospects can discover you. Of all the methods of communicating your messages, direct solicitation is always the toughest. To avoid this, make a list of points of contact you can use for future promotional activities.
Here are some questions to consider:
Where do they network? What conferences or workshops do they attend? What magazines, publications and newsletters do they read? What websites do they visit frequently? What directories are they listed in? Where do they advertise their services?
Your promotional activities should be pointed toward these areas. Otherwise, you’re left with direct solicitation that isn’t the most effective way.
Quick House Sale
Jul
31
Consolidate Your Debts With A Mortgage Refinance
Posted by: | CommentsSo you are a shopaholic. You see a nice pair of shoes, or a lovely dress maybe, and your hands get all itchy. And when you’ve had your mind set on the item, that unbelievable price tag becomes insignificant. And since you have your credit card, money is not an issue either (at least for the moment).
Bags of Problems
And that’s where your entire problem is coming from. Suddenly, your ‘real income’ is lower than ever. Your monthly outgoings have skyrocketed that you barely have anything left for your personal expenditures, much less for debt payments. And your credit card loans are now beyond the amount that you can manage.
You know it. You’re in too deep and you are in a real mess. You wake up in the morning besieged by your worries and you find it hard to catch some sleep at night with all your nagging thoughts about debt payments and all the problems that go with the package. Now what?
You have to Act on Your Problem
One thing is for sure. You have to act on your problem immediately. This is not something you can procrastinate, lest you find your debts reaching even more uncontrollable heights.
So how do you deal with it? Pay off your debts and start anew. You may think it’s easier said than done, if not impossible. If you do think this way, you have not heard about mortgage refinance. This is one option you can count on at times like these.
The Solution to Your Problems
So how does a mortgage refinance solve your problems? A mortgage refinance gives you everything you need - the money to pay your numerous smaller debts, lower interest rates, and lower monthly payments. How so? It’s all simple. Through a mortgage refinance, you transfer from an unsecured loan to a secured one.
A mortgage loan is a secured loan because it holds a collateral that serves as security, as opposed to your credit card loan which is unsecured. In a mortgage loan, the lender holds the right to foreclose on the collateral, usually a valuable real estate property, in case of nonpayment. This means more security on the part of the lender and in turn, more room for generosity in terms of interest rates and monthly repayments.
Consolidate Your Debts with a Mortgage Refinance
This is mainly why a growing number of borrowers are using mortgage refinance to consolidate their debts. That is, they place their home under a second mortgage where they get money to pay off all their smaller yet numerous debts. After the deal is set, they only have one debt to take care of. This means less confusion and daunting paperwork. More so, you get the benefit of lower interest rates and its contingent reduced monthly payments.
With your mortgage refinance, you get to pay your numerous debts and you get to have more manageable monthly payments. Now you can head on to a fresh start. You must make sure that you don’t put this chance into waste. Once you’ve got everything sorted out, do not go back to old habits, lest you lose your most valuable asset - your home. Grab your solution and make the most out of it.
Repossession
Jul
25
When to Get a Mortgage Refinance
Posted by: | CommentsWith all of the mortgage problems that you hear about in the news lately combined with the lower interest rates we are seeing today, many people are wondering whether refinancing your mortgage is a good idea or not. Here are a few pointers that will help you decide of refinancing is the right decision for you.
Ignore the “Two Percent Rule”
Many people will say that you shouldn’t refinance unless you can get a mortgage rate that is two percent lower than your current rate. This rule oversimplifies the decision and only focuses on a single factor.
You need to realize that refinancing your mortgage is going to cost you money up front. You will need to pay fees to your loan originator, the lender, and possibly some third parties as well when closing the new mortgage. Because you are probably going to want this process to save you money, you should consider how long it will take you to recoup these expenses. To calculate this, add up all of your fees and divide that buy the savings that you will receive with your new monthly payment. This will give you the number of months required to recoup thee mortgage refinance expenses.
When deciding whether to refinance, you need to consider how long you plan on staying in your home as well. The longer you plan on staying, the more time you will have to recoup the refinancing costs and start saving money which makes refinancing your mortgage a better choice.
Refinance To Consolidate Bills
One of the main advantages of refinancing to consolidate bills is that you will get a tax deduction for the interest that you are paying on your debt. When you refinance your mortgage for debt consolidation, you are basically borrowing more money then you need to pay off your existing mortgage and using the extra money to pay off your other bills such as high interest credit cards, or car and student loans.
Adjustable Rate Mortgage
If you currently have an adjustable rate mortgage that is going to reset within the next couple of years you need to start thinking about refinancing now if you are concerned that you will not be able to afford the new payments, don’t wait until the last minute! Start doing some research now and look for the best person to originate your loan. Because of the current situation in the economy with mortgages, customers who have done their homework will be able to take advantage of this and get the best deal.
Repossession
Jul
16
Home Mortgage - A Deeper Insight Into Its Pros and Cons
Posted by: | CommentsBuying a house is such an ardent experience because of the fact that you have achieved your long day’s dream. However, what come next are the mortgage problems that you are going to encounter. Home mortgage is a smooth and easy process when you deal it in the right way. However, sometimes it turns out to be a little messy especially for first time buyers when they take a wrong move.
Prequalification and pre-approval is required when u get a mortgage before buying a home. The people who are benefited by this process are:
Yourself: - Prequalification makes you head in the right way by setting rates for the variables like previous income, debt, credit history, variations in different mortgage types etc. in the application form. It gives you a clear sense of direction.
Agent: - Since your agent is well aware of your mortgage parameters, it will be easy for him to look for a house that fits your range.
Seller: - A seller always chooses an offer that is pre-qualified because he will have only a second thought on ‘I will get back to you soon’ buyer who he cannot trust.
The first step for applying home mortgage is to fill the application form, which has details like personal earnings, monthly expenses, employment record, the house you are going to buy, debts to pay the mortgage etc. The lender will not approve the application if the credit history is not satisfactory.
The financial condition of the buyer marks an important deciding factor for the mortgage payment. A real estate judger will be consulted for the estimation of the property. This decides the amount of mortgage that is required by the buyer.
The loan decision affecting factors for house mortgage are
If the down payment offered by you is not sufficient, the lender goes for other mortgages that suit down payment.
If the appraiser underestimated the value of the property, the buyer can ask for re-examination. If the amount has already been paid, a copy can be received from the lender.
If the lender is not satisfied with the credit history, the buyer can explain him the debt ratios with the credit history standards.
Federal law plays an important role in preventing injustice that may possibly occur to the buyer or seller in the name of sex, creed, race, religion or physical disabilities. Federal law tells that
1. The lenders should willingly provide you the information like how to apply for the loan etc.
2. They should consult with the buyers about the various mortgage plans and analyze on which suits them the best.
3. They should be proactive in taking a decision without any delay after the buyer submits the application form and the other necessary details.
4. The lender should not have race or religion as the priority depending upon the neighborhood of the house that the buyer is going to purchase.
These regulations, when followed correctly, can help you in settling with a smooth home mortgage process.
Real Estate Professionals
Jul
15
Subprime Mortgage Crisis – Why Can’t Lenders Just Fix the Bad Loans and Move On?
Posted by: | CommentsWith all of the foreclosures and bankruptcies that are being triggered by the subprime mortgage crisis why don’t lenders just put all of these homeowners in better loans? We are asked this question on our mortgage blog quite often. It’s a reasonable question too. If it’s the bad loans that are causing the problems wouldn’t be cheaper for the lenders to just bite the bullet and fix the bad mortgages? Meaning, wouldn’t it cost banks less money to lower interest rates and fix adjustable rate mortgages on their loans than the billions they are losing from all of the foreclosures?
In some cases banks are doing just this because it does make sense. However as I will explain, this is much easier said than done for most banks. The reason is that very few banks these days “own” the mortgages they service. A few regional and national banking chains do maintain a portfolio of loans that they originated, but by in large most banks do not. Most mortgages are owned by a pool of investors and are merely serviced by the company that homeowners send their payments to.
This is why when you call your current lender that you already have to refinance they make you re-qualify for a new mortgage again. While I was originating mortgages, I had countless borrowers call me to refinance that were disgusted with their mortgage company for that very reason. It seems to reason if you have paid your mortgage on time for ten years the bank would just lower your rate to keep from jumping-ship to another lender. The problem is that they have to put your new loan in a new portfolio and sell that portfolio to other investors, this is called securitizing.
Banks and lenders buy money to sell much as retailers do for the inventory that they keep on their shelves. For instance, a toy store can purchase a crate full of toy soldiers at a wholesale price then put them on the shelves and retail them for a profit. Banks buy and sell money the same way from their retail, or mortgage divisions. The only difference is that banks reach their loan capacity they have to take these groups of loans and sell them to investors on Wall Street. If banks didn’t do this they would loan all of their money and be out of the mortgage business.
Now you have a group of loans that is being serviced by the bank that is owned by 1 to 100 different investors. That group of loans is treated like the wholesale the box of toy soldiers that is sold by the case not individually. To ask the investors to reach into the “box” and pull one soldier out and alter it would disrupt the total value of the box as a single unit. This would also upset the other investors who have money tied up in the box of toys.
Staying with the toy soldier analogy, what has happened to banks in this crisis is they can’t sell the box of toys to the investors anymore. The retailer has $100 invested in the box of toys and investors believe that the toy soldiers are a bad investment and will only offer $70 dollars for the box. This means that the retailer has to hold onto the box until prices rise back to $100 or sell the box for the $70 dollars and take the loss. This is the same with banks today; either they cannot afford to sell their loans or they have chosen not to and ride out the storm.
Both way lenders and banks have stopped buying and selling money as freely as they used to and cash is in short supply. When supply is short and demand is high prices typically go up. This is why the Federal Reserve Chairman keeps lowering the prime rate in an attempt counter higher rates that would almost drive a nail in the coffin of retail lending. As of this article Atlanta mortgage rates are around 5.75% for a thirty year fixed mortgage and would probably be in the mid-sevens without Bernanke’s involvement.
Passing legislation that over regulates banks and lenders will not solve our problems. Neither will instituting individual government plans aimed at helping a finite amount of borrowers like some in congress have suggested. The answer to this subprime mortgage crisis will be derived from a plan to restore confidence in mortgage backed securities that will allow the flow of money to open up once again. The free market will correct its mistakes and lending will begin a new day.
Real Estate Professionals
