Mortgage » Todays Mortgage Rates
What is Happening in Todays Mortgage Market
So, you are probably asking yourself, what is happening in today's mortgage market due to the mess in the real estate market?
Well, good question. Due, to the massive increase in foreclosures these days, lenders and the government are looking at what happened and how to fix it.
People who bought homes in 2005/2006 with no money down and interest only or neg am loans are not sitting pretty now. I have many clients who bought homes then and are now upside down. It is a very scary feeling.
Most of the foreclosures were happening in the Subprime Arena (or challenging credit clients). People who had credit scores lower than 620 or a BK, collection etc.. Now, these foreclosures are spilling over into the Alt A market and 2nd mortgage (Home Equity). Investors are not buying loans on wall street or are demanding better returns for these riskier products. Many investors just got rid of 2nd mortgages or Alt A products like No Doc, Stated income and No Ratio.
So, what does this mean to the average consumer? If you are holding off to refinance b/c your ARM is not due or thinking the rates might come down I would re-think that. Many programs that were offered last year are gone. Home values are still on the decline and mortgage rates are not decreasing. Holding off could hurt you in the long run.
I am not trying to pressure you. If you have a trusted Mortgage Advisor, please consult them. Please email me at jeremy@76mortgage.com or visit my website http://www.76mortgage.com for more info.
Source: www.articlecity.com