President Bush & Secretary of the Treasury Hank Paulson announced our government's plan to Freeze ARM Interest Rates yesterday afternoon. You can read the proposal here. Though many call it a Subprime "bail-out" plan, President Bush said that it is everything but for investors.
It is estimated that approximately 1.8 million Subprime mortgages are due to reset (which means higher rates) by 2008 & 2009. Ensuing foreclosures at which point appear inevitable.
Well, the premise of the new plan is to aid an estimated 1.2 million homeowners in avoiding foreclosure (this according to Paulson).
From the article on MarketWatch:
"The five-year freeze, Paulson said, would give borrowers a chance 'to work through this housing cycle.'"
The Mortgage Banker's Association further commented,
"The administration's plan is a model 'best practice' for the industry to address a number of competing interests, he added. 'Most important, it constitutes another creative way to allow current borrowers to stay in their homes.'"
According to the plan and who it will help...
™
Mortgage Advisor
Direct: 323.810.2175 | E-mail: ricardo (at) ricardobueno (dot) com
And if you haven't already,
at www.industry-report.com
No false promises just smart, innovative, professional and ethical financing solutions! Licensed in 43 States!
Jumbo Mortgage Rates: Jumbo to Conforming Yield Spread Down!
Wilshire Weekly Mortgage Update ~ Oct. 8
Actualización Semanal De la Hipoteca De Wilshire ~ 8 De Octubre
Change In the Bankruptcy Law: Good and Bad!
Wilshire Weekly Mortgage Update - October 1st
Actualización Semanal De la Hipoteca De Wilshire ~ Octubre 1
Actualización Semanal De la Hipoteca De Wilshire - De Sept. El 24
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2008 ActiveRain Corp. All Rights Reserved
It's not a bad plan I do not think it will help a lot as a lot of the folks it is aimed at were refing anyway. But hey every little bit helps
Every little bit helps "sometimes"....and if you look at band-aids, some are better than others, and sometimes air heals better :)
I think the freeze still falls short though, those people that are already behind a payment or two cause their rate has started to adjust don't qualify and are left to fight through this time on their own. Also people that have already lost their home, this doen't help them at all.
Kathy: that's why I'm not necessarily all for it.
Chad: you're absolutely right! That's why some advocates are upset, because it didn't answer the question, "hey, what happens to those whose rates already adjusted?" It doesn't provide a solution...at all!
Kathy: that's why I'm not necessarily all for it.
Chad: you're absolutely right! That's why some advocates are upset, because it didn't answer the question, "hey, what happens to those whose rates already adjusted?" It doesn't provide a solution...at all!
Kathy: that's why I'm not necessarily all for it.
Chad: you're absolutely right! That's why some advocates are upset, because it didn't answer the question, "hey, what happens to those whose rates already adjusted?" It doesn't provide a solution...at all!
Ricardo,
There is going to be some very upset homeowners. Those whose rates have already adjusted or just recently fell behind on the mortgage would not be happy with this move. However, at least it would help those are about to have their rates adjusted. I wonder if this applies to the option arm programs.
Dave