The government is shelling out 700 billion dollars to buy the bad loans that are putting the big banks in danger. We are told that the bad loans consist mainly of unpaid mortgages (sub-primes etc). So the government is effectively buying 700 billion dollars of housing. If we estimate the price of one house between 100k$ and 350k$, then the government should be acquiring 2 to 7 million houses. That is, unless we are being misled and that these bad loans were made up of a lot more than just home mortgages…
Mostly mortgages. 700 billion is a shot in the dark, as is the "rescue" bill. I’m hoping it helps though I’m still against the passage of it. Paulson and Bush with their smug little smiles on convincing our reps to listen to them rather than the people makes me sick.
The government will, in fact, own houses once they buy these assets. The question is, since the mortgages and thus the housing is government owned, what else will they do with it to mess up the economy? Will they pass no smoking bans on the houses they own? Nobody knows exactly what will happen, but the current ideas being thrown around is the government gets a % of the price of the home when it is sold in the future.
It’s just a big mess and will turn into a bigger mess now that the government is involved.
I have an 06 RSX that I bought with a 625 credit score and pay like 500 a month w/ 9-11% interest I think. When I bought it I had 3,000 in credit card debt and had only had a credit history of 2 years. Now that I am 21 and have 3 years of credit history, and have paid off all my debt down to 0, plus made payments on this car for 1 year, I was planning on refinancing the car this year. I am doing this mainly so I can afford the car when I am in the army this year, however I was wondering if the army can provide any discount (like a credit union) for re-financing if I sign an allotment or something so the creditor is sure they will get their money.
Anyone have any info on this?
@ Kathy
I know how a credit union works and I believe my credit is at something like 710, but I know the army has a lot of discount worked out with various institutions and I was wondering if being the army would help lend me credit for something like a refi. Obviousely I would only be doing this once I have been in for at least 6 months.
check out www.military.com as they have a huge list of Servicemen entitlements.
Good Luck
I live in CA and wachovia is my lender. I live elsewhere but use my property as a rental duplex. Does Wachovia remodify loans or refinance in this case?
No your duplex is a business so they will not refinance under normal circumstances.
I’m reading that you only need 10% equity in your home to refinance. It seems like last year that you needed 20%. What’s true?
You are correct. Many areas were labeled "Declining Markets" last year. the banks would not loan without big equity. That is easing today. The banks will loan a higher percentage. But the credit qualifying score has also increased so that is off-setting some of the leniency in the loan-to-value.
I am self employed and want to get qualified for home equity loan. What are the qualifications lenders look at. What do I need to show them and have?
Been trying to find out on the net, but can find any good resources. If you know any and dont mind sharing would be awesome.
Thanks!!!
You will most likely be required to show two years of IRS filings to prove income. Everything else is basically the same as applying for a first mortgage – house appraisal, savings/checking account statements, credit reports and scores, etc.
I have $60,000 in various student loans, but since consolidating my combined payment is only $300/month. I have no other debt. Do lenders view student loan debt differently due to the flexibility of the loans? Also, would they look more at the total amount of the debt or the monthly payment when determining the rate and loan amount?
With 20 years experience in the mortgage business, I have never seen a student loan that was in repayment treated any differently than any other long term debt. While you may be able to ask for a hardship deferal in the future, which is the only advantage on a student loan that doesn’t exist on a standard installment loan, no lender wants to anticipate that circumstance. As long as the payments extend past 10 months in the future, the lender will only use your monthly payment as part of your qualifying ratios. The total debt is not that important and would only be a minor factor. What will matter more is your payment history on the student loan: it should be perfect. It all comes down to the quality of your credit history (your FICO score) and your qualifying ratios of debt/income.
Try this site
http://free-college-information-usa.blogspot.com/
Free College information on financial aid for students, scholarship, student loans and more.
I am looking for data on the average annual interest rate of Home Equity Loans. From 1970-current would be ideal.
Do you know where I can find this data.
Thank you.
Many online companies are offering their interest rates and loans, check their details and select the one which suits you best depends upon your loan requirement and your financial condition. I am giving you one I have used.
My credit scores are between 570-590 from past late payments on student loans. I since have a good credit history and income but I can not find a lender. I have read that FHA loans only require 580 scores but I can’t find any way to get a loan. Any suggestions will help. I need a mortgage now- I am under contract to buy a house on 2/26.
600,,,impossible especially when they see the online gambling you have been involved with…there is no way…
Im wondering, Im looking in the Arizona area, and I notice the homes are REALLY cheap there. PHOENIX area, Im looking to re-locate. Can anyone help me? Im looking into a home thats under $175,000, Could I qualify for a loan with not so perfect credit? Do they have 1st time buyer programs out there…
Absolutely, you can get 100% financing with a 620 credit score or FHA financing at 97%. Get with a broker and check out how much you qualify for.
I’m getting ready to buy my house. I know to do a 30-yr fixed rate. I’m just wondering what is the buzz about subprime home loans? It seems to really be hurting people and mortgage companies. What are the advantages and disadvantages? Thanks.
There are advantages and disadvantages to everything in life.
I don’t understand your situation financially, therefore I can not answer your question about subprime mortgage.
Sub-prime mortgage was and is an option available or was selected by those that wanted to purchase a house and the program fit their financial situation at the time.
Depending on your financial condition, credit report and other factors will determine if you get a sub-prime loan, an adjustable rate mortgage a 30 year fixed rate and FHA or a "A" loan.
You should not zero in on a certain mortgage program because everyone tell you this is the way to go. Don’t jump into the fire because everyone says it is the way to go and we fell all warm and rosy. This same fire might burn you.
Your financial situation should dictate the type mortgage you get. Everyone’s financial situation is different.
You should contact a mortgage broker complete a mortgage application and allow this mortgage broker to run a credit check for you.
This credit report, debts on your credit report as well as your income will dictate the type of mortgage you are qualified for not that you want a 30 year mortgage or that all your friends have a 30 year mortgage or suggest that you get a 30 year mortgage.
What is best for you right now and in the future should determine the type of mortgage you want and should get.
Once your mortgage broker has mortgage programs available to you then you should sit down with this mortgage broker and go over each option available to you. If you don’t understand a certain mortgage then don’t leave the table until you completely understand what is available to you.
Now once all your options have been explained to you, then and only then are you able to make an intelligent decision as to which is best for you.
I hope this has been of some use to you, good luck.
"FIGHT ON"