November, 2007 Interest Rate Freeze to Help Subprime Home Owners?
The US Treasury Department is close to announcing a plan that it is working on with mortgage companies to freeze mortgate rates for home owners who are in trouble with adjustable-rate mortgages. Specifically, this plan will help the millions of subprime borrowers who took out adjustable-rate loans at low 2 year fixed rates which have adjusted or are set to adjust to higher payments.
It was announced today by the Office of Federal Housing Enterprise Oversight that the 2008 conforming loan limit would remain at $417,000, the same as in 2007. The higher loan limits in Alaska and Hawaii will also remain the same.
Employment data was released today and the numbers are way weaker than expected. Bonds took a bit of a hit yesterday after the release of the Beige Book, and stocks rallyed all day. However, the weak employment data is causing mortgage rates to return to their best levels of the day yesterday.
posted by RJ Baxter November 29, 2007 9:58 | permalink | comments(0) | Housing Crisis Beige Book Report to be Released Today
The "Beige Book" report will be released in about an hour and will be an important market-mover. The Beige Book is a precursor to each Fed meeting and is usually released about 2 weeks prior to each meeting. The Beige Book is a report on the Fed's view of the economy.
The markets have been extremely volatile this week, but today we still sit at near 2-year lows in fixed mortgage rates. I ...
posted by RJ Baxter November 28, 2007 11:09 | permalink | comments(0) | Housing Crisis Trouble Brewing for Fannie Mae and Freddie Mac?
I have started to hear some rumblings about troubles with the two giant government-backed mortgage security companies, Fannie Mae and Freddie Mac. The word on the street is that Fannie and Freddie are experiencing liquidity problems similar to what the subprime market experienced in March and the "Alt-A" and jumbo markets experienced in August.
If this rumor proves true, it will cause further turmoil for the mortgage markets. Guidelines are already tightening dramatically on almost ...
Mortgage rates have fallen again and are now at 2 year lows. Now is a great time to look into refinancing if you have been holding out for lower rates.
posted by RJ Baxter November 26, 2007 14:45 | permalink | comments(0) | Housing Crisis FHASecure- A Second Chance for Home Owners
Millions of Americans nationwide have adjustable-rate mortgages which have reset to higher rates and payments in the last year. Making the higher payment can be difficult, and refinancing even more difficult.
If you are in this position, and having trouble making a higher mortgage payment, then the FHASecure program may be able to help you refinance into a manageable fixed rate loan and lower your payment.
If you are one of the millions of Americans who are self-employed and have difficulty documenting your income, you are probaby familiar with the "stated income" mortgage. With this type of financing, the lender allows the borrower to tell them how much they make without providing supporting documentation. The borrower must have sufficient equity and credit scores, but for many self-employed people, this is the only way to qualify for a mortgage.
