Your Questions About Mortgage Rates News

Lisa asks…

What exactly does the Fed’s recent rate cut mean?

“On Friday, the Fed’s move to cut its discount rate by 50 basis points to 5.75% was seen as an attempt to help distressed banks borrow money”

I have read so many news articles about banks getting lower rates (like over-night lending to other banks) but what types of loans do they effect?

1) Will ARM mortages adjust lower?
2) Will traditional 30-yr mortgages fall? If so, to what APR?
3) Will my student loans change?
4) Will credit card companies be giving better interest rates?
5) Will the interest rate on my online savings account go down?

admin answers:

The answer to all your questions (1-5) are NO.

The discount rate effects very short-term loans by regular banks, and it does not effect any consumer or business loans or savings.

Sharon asks…

If someone in Real Eatate, a loan officer wrote this what in the world does this mean for buying a house??????

The good news is that rates early this week hit the lowest point since mid 2005 with 30 year fixed rates to be had for under 6 Percent. This is huge, as over the last 50 years there are very few times that rates have dropped to this level. I can still remember fixed rates in the 80’s of over 15 Percent. What do you think that would do to your housing expense and disposable income?
The employment numbers which were released this morning were much more positive than anticipated. This has put pressure on mortgage backed securities causing their yield to rise. This movement has increased rates a little, but still leaving us with historically low home mortgage interest rates. The 10-year bond is currently up 20 basis points from Monday of this week, trading at 4.08 Percent -up from 3.88 Percent. Our feeling is that despite the market gyrations we will enjoy these favorable rates over the near term, making this a great time to purchase or refinance.

admin answers:

The interest rate is low compared to as in the past. It talks about employment, since employment means people are able to perhaps pay bills etc… Thus changing the economy, therefore changing real estate slowly since it is slow in adjusting to the economy. In other words, is a great time to buy real estate before rates increase!

Sandy asks…

Where is private money found for Real Estate investing?

I’m looking for a private equity type of lending outfit.
While I’ve heard about private mortgage brokers and such things like that – there is no evidence, none that I have seen, that they actually are out there (though I know they must be)

Being stranded out in the middle of Kansas is making it difficult for me to find any lenders who will work with me. I can work with a >60%LTV and rates as high as 22%, the problem here is my personal credit is bad news and I’ve not got any cash right at this moment here.

The right lender will make quite a bit of money with me as I don’t play games or come up with any stupid ideas. I simple haven’t found him/her/them/it (something/someone with enough brains to work with me) so far!
wolfgang007,
I am not going to let bad credit stop me. Forget it!
Thank you Mr. Gee..
Don’t worry I don’t let being turned down bother me and I certainly won’t worry about what someone who can not spell “you’re” has to say 🙂 PS: I’m looking at rehab projects.. fix and flip type of a story.

admin answers:

I am a mortgage specialist. I do know a gentleman who will lend only on the equity of the property. He will lend you 50% of the property value. He doesn’t even want to pull your credit. It doesn’t matter. He must be able to put a lien on 50% of the property. He must be in first place should there be other liens on the property. You must pay an up front fee. You must be able to produce an appraisal (doesn’t have to be a new appraisal). In the case of commercial property, you must provide rent rolls. In most cases, the people who use this option use it on income producing property where the income will make the mortgage payments and produce revenue for the mortgage holder. If you need further information, contact me at wwi_2@yahoo.com

James asks…

Was S&P downgrading U.S. rating retribution for Federal mortgage probe?

Standard & Poors is responsible for much of our economy tanking by inflating mortgage ratings packages so the Federal Gov FINALLY got around to investigating their culpability. Apparently this probe began BEFORE the U.S. August 5th downgrade to AA+, so is it possible this was payback message to show how vulnerable we are for targeting S&P?

http://www.nydailynews.com/news/national/2011/08/17/2011-08-17_sp_mortgage_ratings_probed.html?r=topnews

admin answers:

Yes. Unfortunately McGraw-Hill (S&P), World Bank and other financial groups have great economic leverage worldwide. Governments are controlled by their needs assisted by people who have been placed in government seats that have alliances with these institutions and prioritize their interests which is a conflict of interest. These biased emissaries are Influencing U.S. Legislative decisions which have had horrible ramifications because of these ties with special interest groups (such as Geithner’s prev employment with Goldman Sachs), and have plagued the U.S.which has helped weaken our economic security exemplified by our most recent downgrading for the 1st time in history. Basically the financial sector’s greed has too much power.

Http://www.moneynews.com/StreetTalk/TimothyGeithner-2008FinancialCrisis-FederalReserveBankofNewYork-WilliamDudley/2011/07/22/id/404538

Richard asks…

How come Obama has yet another of his “historic accomplishments” in the housing market?

Aug. 23 (Bloomberg) — Sales of new U.S. homes declined more than projected in July to the lowest level in five months, indicating the industry is struggling to stabilize two years into the economic recovery.

Purchases fell 0.7 percent to a 298,000 annual pace after a 300,000 rate in June that was slower than previously estimated, figures from the Commerce Department showed today in Washington. The median projection in a Bloomberg News survey of economists called for a 310,000 rate in July.

Builders are less inclined to start new projects as they face competition from cheaper existing homes and the prospect of foreclosures putting more unsold properties on the market. A jobless rate above 9 percent and limited employment growth indicate housing may keep weighing on the recovery even with mortgage rates at a record low.

http://www.businessweek.com/news/2011-08-23/new-home-sales-in-u-s-drop-to-lowest-level-in-five-months.html
Why attack me, I am just the messenger
Glass the ‘rich’ hire people, the poor don’t

admin answers:

Because there are no jobs , no job no house … Epic fail …o=fail

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