Your Questions About Mortgage Rates News

Michael asks…

YIKES…we have an adjustable rate mortgage…advice?

We are due to refinance our A.R.M. this coming July. I’m really freaking out because of this big credit crunch that’s going on and all of the homes that are being foreclosed. We went with an A.R.M. because our credit wasn’t all that great, and the interest rate was better than with a fixed rate mortgage. I really need some advice and I’m hoping for some good news.

admin answers:

Tough situation. You are alreadly thinking about it, though, which is good. To get a quick hike in your credit rate, I would pay off ALL your credit cards, and then make purchases on them and keep paying them off. This will show that you are able to pay on time and carry no real plastic debt…that will help. Also, don’t wait until July to get everything in order and start shopping for the best rates out there. Go ahead and start refy now, find the best rates and people who will approve you so that when the time comes, you just have to rubber stamp it and not loose any more time on the processing time.

Good luck

Joseph asks…

Obama Stimulus plan – Mortgage rate of 4.0%?

I read this article http://news.yahoo.com/s/ap/20090206/ap_on_go_co/stimulus_housing
saying that the votes didn’t go through for the lower mortgage rate of 4.0 as part of Obama Stimulus plan.

If you read/heard of this stimulus plan, please share with me.
I am thinking of refinancing my mortgage with a lock in rate of 4.8% + 1 point that would expired end of this week. Should I go with this rate? What’s the chances that the 4.0% rate stimulus plan would go through?
LGuz
the $15,000 tax credit do not apply existing home mortgage.

admin answers:

This was the minority idea in Congress. They wouldn’t approve the stimulus bill unless this 4% rate was included. It did not work. It was not included. If things get worse in the economy, we might see this done at 3.5% fixed for 30 years..

Steven asks…

Is it fair that Obama got an incredible deal on his mortgage from Rezko, but we all have to play by the rules?

What was it again?
Shortly after being sworn in as a U.S. Senator in January 2005, Obama bought a Georgian mansion in an upscale Chicago neighborhood. Obama bought the house for $300,000 less than the asking price of $1.95 million.

The Obamas’ income had just risen dramatically. As a U.S. Senator, Obama got an annual salary of $162,100, Random House agreed to reissue an Obama memoir as part of a $2.27 book million deal, and the University of Chicago Hospitals promoted Michelle Obama and more than doubled her pay, to $317,000. To finance his new mansion, Obama secured a $1.32 million loan from Northern Trust in Illinois. Obama received a discount on the loan:He locked in an interest rate of 5.625 percent on the 30-year fixed-rate mortgage, below the average for such loans at the time in Chicago. The loan was unusually large, known in banker lingo as a “super super jumbo.” Obama paid no origination fee or discount points, as some consumers do to reduce their interest rates.

Compared with the average terms offered at the time in Chicago, Obama’s rate could have saved him more than $300 per month.So who cares? Perhaps you should. Joe Stephens explains why in the Washington Post:But amid a national housing crisis, news of discounts offered to Sens. Christopher J. Dodd (D-Conn.), chairman of the banking committee, and Kent Conrad (D-N.D) by another lender, Countrywide Financial, has brought new scrutiny to the practice and has resulted in a preliminary Senate ethics committee inquiry into the Dodd and Conrad loans.

Within Obama’s presidential campaign organization, former Fannie Mae chief executive James A. Johnson resigned abruptly as head of the vice presidential search committee after his favorable Countrywide loan became public.

Driving the recent debate is concern that public officials, knowingly or unknowingly, may receive special treatment from lenders and that the discounts could constitute gifts that are prohibited by law.

“The real question is: Were congressmen getting unique treatment that others weren’t getting?”
http://www.examiner.com/x-268-Right-Side-Politics-Examiner~topic5532-Rezko

admin answers:

You dare to question the Savior?! To the gallows with ye! There shall be no dissent; all must bow towards Dear Leader Obama!

Linda asks…

Yahoo News Headlines Biased?

#1 The story of the girl who dies from being denied a liver transplant from insurance?

Is this really unique? Why aren’t there stories of the thousands who die in Canada each year from all of the red tape causing breakdowns in their Socialized Healthcare system?

#2 Tent City in Suburbs? – Referring to the “victims” of the Subprime mortgage rate bust.

NO ONE is responsible except these people. They signed for mortgages with VARIABLE RATES, meaning the rates could rise at any time for any reason. They signed for introductory rates that were LOWER than the Prime Rate, which means the banks were going to lose money if the Prime Rate rose. WHAT IN THE HELL DID THEY THINK WAS GOING TO HAPPEN??? – The Banks raised their rates and all of the sudden, these people could not afford the mortgages that THEY signed for. How dumb can a person really be? And they want the government to bail them out?

Are they going to bail me out if I buy car that I couldn’t afford? – Hell No!

admin answers:

See.
You understand this because you are smart. You don’t like to be forced-fed s**t. The average liberal does. They don’t want to think. They would rather find ways to escape society, which means taking as little responsibility as possible..which explains the rampant drug use.
In both your examples the same message is clear…social responsible? When I was unemployed for 2 months, I made sure I coughed up the extra money a month from my savings for medical insurance. Moreover, there are social welfare programs that offer medical insurance.
If this family makes too much to be on these programs, than what was so damn important to have that their child’s life was inconsequential? I know this is harsh, but I know people who drive beater cars in order to provide the essentials for their children…and then I see people driving SUVs who complain about not being able to provide health-care for their kids? Are you serious!?
Your status symbol SUV is more important than the welfare of your children. Fitting in with the Jones’ is more important than taking care of your kids. Call me names all you want, but if we continue to coddle this kind of behavior it is only going to get worse and we will be the ones flipping the bill for a substandard product.. Reality check, these exists now decent solciallized medical program in the world that is of any value to the system we have. This is why private health coverage is a booming industry in Canada, and Europe.

I am grieved at the loss of this family. It must hurt something fierce, but I refuse to believe they did everthing they could for this child. Is there fault on the State for this? Absolutely!!
But there is also fault on the family!

Sandra asks…

Still think the mortgage crisis is solely the fault of the borrower or Congress? What about WaMu?

According to a Senate Report released today, Washington Mutual, one of the largest originators and purchasers of adjustable rate mortgages, did the following things during the “boom years” of 2006 and 2007:

*Sales associates in WaMu offices in California fabricated loan documents, cutting and pasting false names on borrowers’ bank statements.

*Two top producing offices — in Downey and Montebello, Calif. — had levels of fraud exceeding 58 percent and 83 percent of the loans.

*Extra bonuses went to loan officers who overcharged borrowers on their loans or levied stiff penalties for prepayment.

*Then “WaMu ‘dumped the polluted water’ of toxic mortgage securities into the stream of the U.S. financial system” by repackaging and selling fraudulent mortgages.

Do you still believe that the banks were the victims, not perpetrators of the mortgage crisis?

http://finance.yahoo.com/news/Top-exWaMu-executives-come-apf-1881315538.html?x=0&sec=topStories&pos=2&asset=&ccode=

admin answers:

It’s everybody’s fault. It seems like WaMu didn’t care what their employees were doing and it caused their business to fail, as it should have. Hopefully the fraudsters do some prison time.

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