MORTGAGE BLOG!

"No Cost", "No Points" or "No fee" loans DO NOT EXIST!!!!! As a consumer and potential borrower, you need to have your eyes wide open! If a lender is offering you something for free, they're earning it back someplace else. These promises have been crafted over the years because THEY WORK on many people. Some "no-cost" loans carry higher interest rates to make up for the lost fee's or there are fee's "buried" on the Settlement Statement at the closing table. Most people will not walk out of a closing and this is what these lenders rely on.

Just an FYI, I get these calls all the time. Use common sense. Who do you know, besides volunteer workers, that work for free?

Ok, enough complaining. Have a great week! Interest rates are low and so are home prices! Go shopping this weekend!

Congress is trying to pass the Foreclosure Prevention Act of 2008.

This bill carries two major points; 1- It would give bankruptcy judges the power to lower a borrower's principal and interest on their mortgage to help facilitate them keeping their homes, and 2- It would give State and Local agencies $4 Billion dollars to help purchase and rehab foreclosed homes. Also help to improve those in Subprime loans that are about to experience "payment shock" from a sudden jump in their interest rate.

President Bush is saying he will Veto the bill because while it sounds good on the outside it will actually extend the time it takes for the housing market to recover and eventually lead to higher interest rates. He wants the Congress to give the new "Economic Stimulus" package a chance to work. This is the tax rebate check program we are all hearing about.

So Prez is basically saying "No Band-Aid" fixes please! We'll pay for it later.

Well who knows who's right. We have two choices:

                1-Immediate relief and possible long-term negative consequences

                  or

                2-WAIT and let good old Capitalism work on its' own, not the most comfortable but likely the best for the long-term! 

Whatever your thoughts, we see this DARN Mortgage Industry STILL causing problems! Have a great week and I hope your not in the mortgage industry! :)