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.