30 Year fixed mortgages @ 4.875%

A great option for those who can show hardship, but be weary of the terms and long term implications. Also alot of lenders have changed there lingo lately and are calling Refinances, loan modifications. Countrywide is horrible with this.

When I bought the property, I realized what was coming, I just didn't see it being this bad. So I negotiated a price at 10% - 15% below other properties on the market, actually about $20 per foot below what it would cost a contractor to build a lesser quality home.

A big bunch of new homes (probably 50) are currently being constructed across the street, which will further drive down prices as brand new places are sitting vacant. I'd love to personally thank the idiot behind that project.

I'm in good shape. My credit score is over 800, I have no debts other than my mortgage, I have six months worth of savings, I was able to get a decent interest rate. I'm just sort of pissed off that I'm being punished for doing everything right.

I had intended to keep the place another year, with a fallback position of keeping it another four if things got bad. Now it looks like I might be lucky to break even by that time. Maybe. I have stopped investing money into any improvements, as the house is currently not worth what I owe on it. That's in case something really bad happens and I have to walk away later I won't have invested in a sinking ship.

reply to post by anotherdad

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CURRENT 1 MO. PRIOR
15-YEAR 5.35 6.04
30-YEAR 5.58 6.41
1-YEAR ARM 5.52 5.88

www.bloomberg.com...

Not sure what bank your working for? .. 5.5% is a good rate anyways, but I def don't see no 4%ish range....

reply to post by anotherdad

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Not quite.... Countrywide is the best to do this with... just have to know how to work it... have plenty of friends doing loan mods, Hardship is not that hard to show. As far as long term ramification, if your in an adjustable or going to be and have no equaty, or are upside down, its the alternative to forclosure.

Unsecured Debt = Debt Settlement.
Mortage = Loan Modification
Car = Repo + Debt Settlement = only paying back a small portion
Taxes = Tax Settlement Company

Most people are running out of options. As Far as Credit *your great credit got you into debt you can't dig yourself out of*

reply to post by VelmaLu

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My parents sold their first home in 1989. They made a 9k profit.

It was in the middle of a tough economy..

Had they waited 5 years, they would have made over 60k in profit.

My advice.. don't sell your home in the midst of real estate deflation.

If your loan is bellow 6%, you have a relatively good rate.

PS good credit seems to mean nothing.. I have perfect credit and my Wall Mart credit card (for sams club) of all cards got its line of credit rolled back. I was seriously hysterically laughing when I read the letter.

[edit on 12/4/2008 by Rockpuck]

More detailed summary:

CURRENT 1 MONTH
PRIOR 3 MONTH
PRIOR 6 MONTH
PRIOR 1 YEAR
PRIOR
30-Year Fixed 5.58 6.41 6.19 5.98 5.6
15-Year Fixed 5.35 6.04 5.71 5.54 5.18
5/1-Year ARM 5.88 6.04 5.86 5.29 5.49
1-Year ARM 5.52 5.88 6.06 5.96 5.45
30-Year Fixed Jumbo 7.06 7.46 7.43 7.15 6.49
15-Year Fixed Jumbo 6.29 6.84 6.72 6.65 6.17
5/1-Year ARM Jumbo 5.91 6.19 6.39 6.15 5.99

www.bloomberg.com...

Heres an idea for everyone. Go live with your parents for a few years or a cheap cheap apartment save up money and PAY for a house in full or pay most of it. These banks are crooks. Dont think for a minute they wont manipulate the market again. No mortgage = no interest which = hundreds of thousands in savings. My next house will be paid for in cash when I build it. No more mortgages for me after this mess.

reply to post by VelmaLu

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Sounds as if you did everything right and are being caught up in the mess. Just dont believe the news when they act as if new home starts falling as a bad thing. It's a great thing for all of us. Hopefully you can ride it.

As far as improvements, If your doing it for value reasons i would personally hold off BUT!!!!!!!!!!!!!!!!! i do not live in your area, the best person to answer that question would be a reputable realtor or even a bored appraiser (lots of them now). They will know your market much better and have good advice as far as what is helping sell homes.

reply to post by mybigunit

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Very much agree mate.. I won't buy my home until I have at a minimum 20% down. It would take me forever to buy a house in full where I am moving (stupid housing bubble)

reply to post by Rockpuck

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They are reporting an average of retail rates around the nation, as a broker we get wholesale pricing. Think costco versus safeway.

reply to post by anotherdad

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LOL, understood.. I used to broker insurance and other financial investments and the return or benefits ranged wildly..

I dunno why.. but I would be wary of a bank offering such a low interest rate lol...

Is it possible to qualify for anything without a down payment?

We have great credit (750-780 last I checked) and spotless rental history and employment history it's just for one reason or another we havent been able to build 20% down.

I love how I can spend $1000/month rent for years but cant get a $800/month mortgage. That really pisses me off.

reply to post by thisguyrighthere

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It would be very difficult to find true 100% financing these days. You can do an FHA 30 year fixed at 97% LTV....rate in the low 5% range. If you can produce 3% down you should be good.

reply to post by FoxStriker

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In your scenario you are correct. What i said is be wary of those calling a refi a loan mod, there is a difference. And a loan mod is an excellent option to foreclosure.

reply to post by Rockpuck

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I'm not sure of your angst towars me or why you feel insurance brokering is the same as mortgage. Brokering is but rate and fee structure? If you dont believe me fine talk to the lady earlier in the post who has 5.25% which i'm sure she got locked last week.

Any other brokers out there back me on this? I am quoting Eagle wholesale.

reply to post by thisguyrighthere

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Depending on where you are buying, county and city. you could qualify for a USGA? rural housing program, although some approved areas are not that rural. This is a zero down program. Guidelines are tight but sounds as if it would be worth your time investigating. I am sorry i do not have more info on this as i have not done one of these loans yet. I would get a referal to a local trustworthy and expeirienced mortgage broker in your area and reference this program.

Sorry i am assuming you are not a veteran, if you are then go VA.

[edit on 4-12-2008 by anotherdad]

reply to post by anotherdad

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In financial terms, especially mortgages or insurance or financial services "brokering" refers to the distribution of multiple companies.. essentially being the middle man or the one who creates the relation between client and companies.

Being a "broker" for a "Brokerage" firm wouldn't exactly give you insight into writing mortgages...

Perhaps we see the term "Broker" as something different?

reply to post by Rockpuck

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I am a MORTGAGE BROKER, not sure what your point is. I know what "broker" means.

4.8% is hardly newsworthy.
When its below 2% then it is newsworthy.
I see this as a thread just trying to get business.

Wow a little touchy arent we? Yes brokers do have a wholesale sheet to work from but generally the people end up paying retail anyways because the brokers make the difference in back end money.