Combating the Subprime Mess

Many borrowers who bought or refinanced in 2004, 2005 or 2006 and obtained a Adjustable Loan (ARM) like a 2/28, or a 3/27 (sometimes known as exploding ARM’s) probably did so because they had some credit blemishes. Or perhaps they were not well informed or may be they were taken advantage of during the purchase/refinance.

As these loans are coming due to adjust during this year, I’ve seen an increase number of borrowers wanting to refinance with an ARM that offers them a longer fixed rate period like a 5/1, 7/1, 10/1 or at best a 30-year fixed.

The problem many have encounter is Read more

June 12th, 2007 · Filed Under Mortgage - Loan Information

Comment

Positive and Negative Appreciation Seen in the Housing Market Across the U.S.

The rate of home appreciation in the U.S. remained slow but positive in the first quarter of 2007. Each quarter the Office of Federal Housing Enterprise Oversight, an independent entity within the Department of Housing and Urban Development (HUD), releases the housing report House Price Index (HPI).

The HPI uses information from Freddie Mac and Fannie Mae (for which OFHEO has supervisory oversight) to estimate house prices based on mortgage closings of the same house over time. However these one-on-one comparisons of sales prices or appraisal figures Read more

June 12th, 2007 · Filed Under Keeping an Eye on the Market, Real Estate Information

Comment

Rates Are on the RISE

Interest rates have been on the rise for the past few weeks, with the rate for a 30-year fixed rate mortgage rising to an average of 6.53% according to Freddie Mac. This increase in mortgage rates has dissuaded borrowers from refinancing according to the Mortgage Bankers Association. Are they hoping rates will come down? May be…but what will happen if rates continue to creep up? Borrowers will simply have to refinance or buy with a higher interest rate than the rate they could have obtained today.

June 12th, 2007 · Filed Under Keeping an Eye on the Market