Your Questions About Mortgage Rates News

Mandy asks…

My mortgage lender is having subprime worries. Should I be worried?

My mortgage is with Countrywide, and if you’ve seen the news today, they’re starting to get hit with issues stemming from subprime loans.
I wondering whether this is something I should be worried about or not.
My gut feeling is that it shouldn’t matter. I have an established loan with a good fixed rate. They can’t raise my rate or anything like that, everything is contractually bound. If they go bankrupt (which is unlikely) my loan still shouldn’t be affected as far as I can tell.
What are other people’s thoughts here? Is there any reason to be concerned about financial issue at your lender?

admin answers:

You have nothing to worry about.

Even if Countrywide were to close down, your loan would be sold to another servicing company and you will continue making the same payments.

They cannot change the terms of your closed loan.

Laura asks…

Why isnt Fox News covering this?

Interspersed between the continuing Michael Jackson saga and the real life story of yet someone else who survived a plunge from an aircraft flying over the Amazon, CNN buries this story about seven more banks that failed just in one day, i.e., today, which is the same day that Obama comes out saying that everything is going to be just fine. Don’t worry! Unemployment is though the roof, California is issuing IOUs, the stock market is in the shitter, and seven banks failed in one day. And did we mention to have a nice 4th, even though gas prices have risen to near three bucks again? Oh yeah, have a nice 4th.
Seven banks were shut down by authorities Thursday, pushing the tally of failed banks for 2009 to 52, more than doubling the failures in 2008.

Six regional banks in Illinois and one in Texas closed their doors, according to the Federal Deposit Insurance Corporation.

Twelve banks in Illinois have failed this year. Thursday’s failure in Texas was the first for the state in 2009.

Local banks have been hard hit as plummeting home values devalued mortgage-backed assets and rising unemployment rates caused an increasing number of consumers to default on their loans.

Larger financial institutions have been helped with government bailouts, but smaller regional banks continue to struggle.

FDIC fund: The total cost of Thursday’s bank failures to the FDIC is $314.3 million, bringing the FDIC fund’s total cost for failed banks to $12.3 billion this year. That compares with $17.6 billion in all of 2008.

Only 25 banks failed last year

So i ask to to every thinking person out their who uses logic and facts instead of kool-aid and words like “change” and “obama” to see the truth, Why is Fox News not covering the fact that Obamas stimulus package is nothing but hyper-inflation for the poor/middle class and pay off’s for the rich?

(and please dont call me a bush supporter or republican at the risk of making yourselves sound liketotal idiots)

admin answers:

HMmm.
Several bank faliures in the heavily leftist Illinois
1 bank faliure in heavily right Texas.
Interesting

George asks…

Did you see this breaking news ACORN’s Illegal Alien Home-Loan Racket uh oh should La Raza be investigated to?

There’s one thing more shocking than the illegal alien smuggling advice that an ACORN official in San Diego gave undercover journalists James O’Keefe and Hannah Giles. It’s the illegal alien home-loan racket that ACORN has already been operating with the full knowledge of the U.S. government.On Wednesday, O’Keefe and Giles published the fifth in a series of BigGovernment.com sting videos. ACORN official Juan Carlos Vera coached the pimp-and-prostitute-posing pair on how best to pull off a border-busting smuggling operation. It would be “better from Tijuana,” he counseled on videotape. Vera then generously offered the investigative couple his Mexican “contacts” to bring 12 illegal alien girls into the country for prostitution.

GOP California Gov. Arnold Schwarzenegger now wants an investigation. But neither the Terminator nor any other California public official raised a peep when the very same San Diego ACORN office publicly announced a partnership with Citibank to secure home loans for illegal aliens.

In 2005, Citibank and ACORN Housing Corporation — which received tens of millions of tax dollars under the Bush administration alone — began recruiting Mexican illegal aliens for a lucrative program offering loans with below-market interest rates, down-payment assistance and no mortgage insurance requirements. Instead of the Social Security numbers required of law-abiding citizens, the program allows illegal alien applicants to supply loosely monitored tax identification numbers issued by the IRS.

The San Diego Union-Tribune reported that “undocumented residents” make up a vast market representing a potential sum of “$44 billion in mortgages.” Citibank enlarged its portfolio of subprime and other risky loans. ACORN enlarged its membership rolls. The program now operates in Miami; New York City; Jersey City, N.J.; Baltimore; Washington, D.C.; Chicago; Bridgeport, Conn.; and at all of ACORN Housing’s 12 California offices.

San Diego ACORN officials advised illegal alien recruits that their bank partners would take applicants who had little or no credit, or even “nontraditional records of credit, such as utility payments and documentation of private loan payments.”
The risk the banks bear is the price they pay to keep ACORN protesters and Hispanic lobbyists from the National Council of La Raza screaming about “predatory lending” off their backs. These professional grievance-mongers have turned the 1977 Community Reinvestment Act — which forced lenders to sacrifice underwriting standards for “diversity” — into lucrative “business” opportunities. Or rather, politically correct blackmail.
more much more to read http://www.noozhawk.com/local_news/article/092009_michelle_malkin_acorns_illegal_alien_home-loan_racket/

admin answers:

Of course LaRaza should be investigated. They are also corrupt!

LaRaza helped write the pork spending bill. They are a racist group.

Ken asks…

Tell me some good news?

I’m feeling so depressed over all the news about the financial system collapse, the subprime mortgage crisis, bailing out Detroit, that fact that humans will probably be extinct in about 200 years based on our current rate of consumption and destruction and overpopulation. Help! I need to hear some good news!

admin answers:

I went to the dentist today for my check up and didn’t need anything doing…again…that’s great news for me!

Chris asks…

How to pay off 125% mortgage early?

A few years back I opted to get a 125% mortgage – like a mug. The good news is that I have always paid both parts, the mortgage itself and loan, on time. I have a year and a half before the interest rate increases. Since taking the mortgage I have been lucky to receive big increases in my salary but not sure how to move forward next i.e. over pay loan part only, over pay mortgage part only, over pay both, save a healthy deposit, sell up and start again sensibly?

Everyone’s help is appreciated in advance.
Hey thanks for the answers so far. No I’m not struggling with the loan at all. I am just worried that I will struggle once the interest rate increases next year. I want to get a good start on paying the mortgage and/or loan before I get into any potential trouble.

admin answers:

You don’t say whether you are underwater on the loan and if so, by how much. Luckily you have an increased income to help you now. If you can start paying down on the principal of the mortgage and get it down to an 80% loan to value ratio, you can refinance pretty easily without having to pay PMI. If I were you, I would get an evaluation or appraisal to find out your property’s true present day value. Then I would do some checking about and see how much of a mortgage you can qualify for today, Hopefully the amount that you can qualify for and the remaining amount left on your mortgage isn’t outrageously far off. If you can start throwing money at the mortgage to get the amount owed down far enough before the loan resets, you can refinance with a fixed rate mortgage. See if your banker will run an “off the record” prequalification for you so that you know what your numbers are.

“Underwater” in my question meant: Do you owe more on the house than it is worth. I’m sorry that I was not more clear. If you are underwater on the house, it will not be possible to refinance. I am a little confused by his part of the question “i.e. Over pay loan part only, over pay mortgage part only, over pay both” because your loan is your mortgage. They are the same thing. The mortgage loan has at least two parts; the principal (the amount you borrowed minus what you have paid during the time you have had the mortgage) and the interest on the remaining principal. There is also, usually, an escrow component to the payment to cover the payment of the property taxes.
If you sell the house, will you get enough from the sale to pay off the mortgage completely? If not, do you have enough cash to make up the difference? If not, will the loan/mortgage company/bank give you a personal loan to cover the difference? If you can’t sell for enough to pay off the mortgage and if you don’t have the cash to pay the difference, and you can afford the payments right now, then you should keep the house if you like it. Hopefully home prices will go up and you can make extra payments to the principal to get it down to an amount that will allow you to qualify for a refinance with a new fixed rate, fully amortized mortgage.

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