Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

Melissa — Fri, 09 Nov 2007 13:00:00 GMT

Answering Viva, I have this exact type of loan. It's a 80/20 subprime with the 80% being a 2/28 ARM (6 mo LIBOR, 6.1% margin) and the 20% being a 12yr fixed IO. The rates are 8.5% and 12.65% respectively. I did it because I make good money and have no debt, but had bad credit in the past. This was to "rebuild" my credit. I knew all this going in and my $2000 payment is about to adjust to $2600/month. I can pay it but I see where others with less income/research would be shocked...

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

Steve — Mon, 21 May 2007 11:00:00 GMT

I agree with you Kathy. Owning a home is definitely a privilege but what about those that can't afford an apartment or any place to live at all?

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

Viva — Tue, 10 Apr 2007 11:00:00 GMT

I am curious about the folks who find themselves in mortgage trouble. Did you use mortgage brokers? Were you steered to the loan you have now? Were you aware that the loan payments would increase? What sort of due diligence did you do? Did you explore many options and compare them? It's natural to want to blame others but we need to educate ourselves since we are the only ones on our side.

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

Anonymous — Sun, 08 Apr 2007 11:00:00 GMT

I have an excellent credit rating, a very good job and salary and still cannot afford the ARM on my property due to increase this year because of unscrupulous mortgage lenders and appraisers who in collaboration with the mortgage broker appraised my home at 35K more than it is really worth. Then came the housing downturn. l have to sell at a loss in order to protect my credit rating. I'm mad as hell-don't know where to turn. I'd like an investigation of these brokers -they should go to prison.

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

Donall — Wed, 07 Feb 2007 13:00:00 GMT

I agree with MJ ! Rates are outrageous and I pay double that of what everyone else I know pays. And thats even with a hard working broker "on my side". Single income, hard working guys get breaks? Unheard of.

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

MJ — Sun, 17 Dec 2006 13:00:00 GMT

One-year adjustment on my ARM is approaching. Spotless credit and good job did not help me on application. Averge one-income homeowner can't afford payments on conventional loans. The real issue lurking underneath ARMs: One income homeowners can't afford payments on a conventional loan, even with large down payment. The monthly on my house would have been double that of a conventional. House prices have reached a level where the working person can't afford a home. That American Dream is gone.

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

rparker — Thu, 21 Sep 2006 11:00:00 GMT

Despite what people say I doubt that there will be a huge level of shock. I say this because inflation is always kept in check which by me means that interest rates will always move in tandem which in this case mean slowly.

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

wh15k3y — Wed, 06 Sep 2006 11:00:00 GMT

When was the last time ANY of you "mortgage professionals" offered someone post purchase counseling, when you knew that you were doing an "at risk" loan?............my guess? NEVER! So put your professionalism where your "better than thou" attitude is and lets help people become succesful homeowners by being responsible mortgage brokers.

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

Matt — Wed, 30 Aug 2006 11:00:00 GMT

I agree with Gary, we as mortgage professionals are setting some up for foreclosures and failure. Unfortunately we are in a market that rewards us more for subprime loans. I have called previous clients of old, to find out that half of them had hard times, lates, foreclosures! How many loans have you done with 580 scores and a 55dti???

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

anonymous — Wed, 30 Aug 2006 11:00:00 GMT

The housing industry sectors that supports affordable housing initiatives do so in an effort to provide families and individuals with the opportunity to own a home. Families and individuals from lower income brackets should have equal opportunity to enjoy the wealth creation and social benefits realized more easily by people in higher income brackets. Responsible, sustainable homeownership is the goal. The problem comes when mortgage professionals act with careless disregard and greed.

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

Sam — Tue, 29 Aug 2006 11:00:00 GMT

The 'close at any cost' mentality that permeates some sectors of the lending industry is to blame for a lot of the problems. Borrowers rarely know where their income needs to be to get approved. When it comes time to inflate or create income, it is generally an industry professional who is behind those false numbers. Combine falsified income with a resetting loan and you can see why consumers are in jeopardy. Martin, I hope you sleep well at night. Nice attitude

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

anonymous — Tue, 29 Aug 2006 11:00:00 GMT

As a mortgage professional I feel that part of the responsibility lies with us. We should not be helping people to get into houses that we know they can not afford. What happened to the days when we were just as concerned about the borrower's ability to pay, instead of just figuring out a way to get them in anyway so that we can make a paycheck?

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

Gary Anderson — Mon, 28 Aug 2006 11:00:00 GMT

Anonymous also, the government doesn't even do a good job regarding national defense. But it has been really efficient at dispersing easy money to single mothers in an effort to smooth over the dot com crash of 2001 with a housing bubble that is now crashing. Monetary irresponsibility starts with the fed, and the single mom is the victim.

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

Anonymous Also — Fri, 25 Aug 2006 11:00:00 GMT

Attention "single mother" Wake up and smell the coffee. IF you want to own something, and not have IT own you, then investigate prior to investing. Home ownership is EARNED. The federal government should be for national defense and very little else. IF you do not understand, then find someone knowledgeable with nothing to gain by sharing information with you and ask them. Remember, 95 percent is perspiration, only 6 percent is inspiration.

RE:Mortgage Rates Reset Shock Is The Latest Worry In Mortgage Markets

Martin — Fri, 25 Aug 2006 11:00:00 GMT

Dear Single Mother in DC, your comment is without merit. If you are in a panic now, about something that may or may not happen in four years from now, then perhaps you should not have purchased at all. Housing expenses always increase (taxes, utilities, etc.) You have four more years to refinance (equity likely). Four more years to pay against the balance. Four moure years to prepare for the "possible" increase in payments. Welcome to the American Dream, responsibility is NOT an option.