Your Questions About Mortgage Rates News

Mary asks…

“Entrepreneurs find value and opportunity where others see only chaos and confusion??”?

The current US economy seems to be experiencing many changes that have been reflected in actual events …mortgage crisis, lowering prime rate, emerging economies, corporate layoffs/job reductions, globalization, and rising unemployment claims. It is not all negative news however.

How might one or more of the current changes in our economy be good news for smart and savvy entrepreneurs?

Are there any new business opportunities that are arising due to these changes?

admin answers:

With more businesses = more competition = less buyers = more wanting money = cant make money = looking for job = cant find job = tightened job market, computers doing all the work nowadays = unemployed people. = BAD ECONOMY FOR COUNTRY!

Charles asks…

The Fed is Going to Reduce the Rate Close to Zero – Good News?

This is ominous, because this is being done to ward off the worst of all scenario’s, DEFLATION.

Which means drastic reduction in living expenses.
Which sounds really good, right? WRONG

Because factories and business will take it in the teeth because they will not be able to cover the cost of doing business. They will have to drastically reduce their payroll and operating expenses, which means layoffs, and even going out of business.

Which means
Wage cuts
Benefits cuts
Even lose your job and most everyone else you know is in the same boat.
What is your lender going to do about your mortgage, your car loan, student loan, credit card?
Your stock portfolio is going to plummet too
So is your 401K and all your other retirement funds.

Remember all the people telling people to stop whining and be responsible?

This is a last ditch effort by the FED.

Who is the FED—-Federal Reserve System?
They are the people who control all aspects of our money
AND
It is a private organization that not even our congress knows who all the players in that system are.

They got us into this mess, they are destroying your life and America.

Are you getting mad?

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WASHINGTON (AFP) – Federal Reserve policymakers were expected to lower key rates close to zero Tuesday in the latest effort to battle a crippling credit crunch and stave off deflation, analysts said.

.
RT

You need to look into the federal reserve system, that is where the real problem lays.

information about the federal reserve system:
http://www.apfn.org/apfn/reserve.htm
And this audio from Senator Ron Paul

And video

Other prespectives
http://www.tysknews.com/Depts/Taxes/fed_banking_fraud.htm
http://www.truthusa.org/articles/fed/fedtruth2004.htm

admin answers:

No. Changing the interest rate will not make any difference to the average person. The damage has all ready been done and it is irreparable. The Federal Reserve Bank has stolen trillions of dollars from the American taxpayer. Their books are not audited and we don’t know who all members are.

The accounting books of the US Treasury have trillion dollar adjustments. An adjustment is when there is money missing that cannot be accounted for. Makes it easy for people to take their share and just adjust the books.

Numbers you see on TV are cooked. For instance, the unemployment numbers are reported to be less than 7% but the real number is closer to 12% or even higher. They never tell us how bad it is.

Sandra asks…

Interest rates went up .6% in Canada and now saying real Estate is going to bottom out.?

Just finishing an update reno. on our house because we were planning on selling. Will be about 1 month until finished. Financial analysts on every news program I’ve watched for the past 2 days are saying this .6% hike in interest rates and the fact that houses are priced at about 25% more than they are worth is going to crash real estate market, Do not sell now you will lose your shirt is the gist of it. Is it really as bad as financial guys are saying? I know house prices skyrocketed a few years ago and have just started to level out in the past year. .6% does not seem like alot to me but as far as financial markets, interest rates etc. I am pretty much lost. Well actually I have no understanding of the markets at all hard as I try to grasp it. Are analysts overreacting? O r should a person actually reconsider selling? We have already been pre-approved for a mortgage about 5 weeks ago so do I need to go back and re-apply or something. If someone can tell me really how this will affect prospective sellers please help. I am totally freaking out and obsessing about this. My husband says this won’t make any difference to us and I am worried about nothing. Is he right?

admin answers:

Interest rates are like a big ship in the ocean, once they start heading in one direction it takes a lot to turn it around.

If you’re a seller right now, that’s a good thing, rates are still historically low.

I believe that once rates start really increasing (and they tend to increase on anticipation of higher rates instead of actual economic reality) then housing prices will come down because it will cost more for a buyer to own the house.

There is a formula, that I can’t remember, that shows how a 1 pt increase in rates decrease the amount of loan a buyer can get.

Steam forward with what you’re doing, you’re still in the sweet spot of low rates.

Donna asks…

Self-employed–how to qualify for a mortgage?

My husband has excellent credit score (816) and has never file bankruptcy, never had debt nor has made late payments on any of our bills. He’s been self-employed for 13 longs years. We have a good $62,000+ in liquid assets (savings, checking, mutual funds, stocks, etc…). We applied for a loan last week because we’ve been preparing for this moment for a loooong time, and we have finally decided to take the plunge to buy our very first home (a townhouse in Maryland). Basing on the current interest rates and the amount of the house we’re planning on purchasing, our would-be monthly mortgage would even be less than what we’re paying for now on rent (which we have never been late on either). This morning, we received a very disappointing news from the lender saying that we do not qualify for the loan. We’ve been more responsible than the majority of the population who are buying a house now. Just because my husband has a Form 1044 instead of W-2, he was denied. All of the assets and excellent credit standing have been set aside. Is it fair?–NO!!

So, we’re now beginning to wonder how we could ever qualify for a loan? My husband is not willing to give up his own small business and change his lifestyle to be able to get a W-2 and own a home. But it’s very discouraging. Can someone shed us some light on this? Is there a particular lender that’s liscenced in the state of Maryland to work with Self-Employed borrowers?
Being self-employed means you can write off a lot of your properties that you use towards your business. Obviously, the deductions make him look like he’s not earning enough even if we still have enough left after all our monthly bills and rent. We were told that it depends on the lender who’s willing to give work with self-employed borrowers.

admin answers:

All banks are being tight on approving mortgages – period. Just because one bank turned you down doesn’t mean they all will. Keep trying.

Maria asks…

I heard that the stimulus package would make fixed rate mortgages go down to 4%. I cant find any reliable?

news sources that state this. Does anyone have any links?

admin answers:

The Republicans put this on the table, allowing everyone who was credit worthy to refinance at 4%. The idea that all the refinancing would create activity at the banks, money flowing back and forth and it would help the average middle class American as well. However, the Democrats used their power over everything that the voters apparently thought was a fine idea to shot that down.

They have removed everything from the stimulus bill that would directly help the average family. For some reason I can not fathom they are targeting families who earn under 40k a year, which is none in CA, you earn that with minimum wage here.

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