Welcome to Home Mortgages
Best Refinance Home Mortgage Loan Rate Article
This is a selection made from among articles on Best Refinance Home Mortgage Loan Rate. For a permanent link to this article, or to bookmark it for future reading, click here.
from:
Mortgage Bailout - What Does It Mean for Homeowners? Too Little Too Late or Just Plain Wrong?
By Lin Ennis
A recent political cartoon in my small-town newspaper showed a little man with big ears standing in a boat wherein a fat man sat smiling and smoking a cigar. The fat man was labeled "Banks"-obviously one of the two being rescued. The small guy with big ears-the other person being rescued-was bailing water from their beleaguered craft, to keep it from sinking into the black as night sea called "SUBPRIME." Trouble was, as the bucket's contents were hurled with great speed (indicated by the ferocity of the cartoonist's splash marks), they hit the face and chest of a passerby in another boat-labeled "Homeowners."
According to "saman" at Foreclosure DataOnline, "There is, of course, a difference between steps that can be taken to prevent foreclosures and a bailout, but many people fail to recognize the difference and remain steadfastly against both. Some economists even believe that proposed remedies might do just the opposite of what they are for, and actually make things worse."
Lenders, by and large, are not known for holding their customers' interests closest to heart. That's why they didn't offer fixed rate loans to 45% of people of color (Black or Hispanic) who qualified for them! And of course, by reselling the mortgages as securities, lenders including the government's Freddie Mac entered into contracts with investors. Now that really complicates saving anybody besides the government and the lenders, with the possible exception of investors.
Jack Hough, over at SmartMoney.com, is clear the bailout will hurt homeowners far more than it will help them. But his reasons may surprise you. Here's Hough:
"The government's new 'teaser freezer' plan would extend for five years the artificially low introductory rates on mortgages made to some buyers with spotty credit between January 2005 and this past July, a period that contained the real-estate market's bubbliest months. A typical such mortgage carries a teaser rate of 7% to 9% for the first two years, and an ordinary rate of 9% to 11% thereafter. Without government intervention, monthly mortgage payments on these loans will increase as much as 30% over the next two and a half years...The president's plan will keep some of these people in their homes, no question.
"But it will also make them poorer. That's because if two percentage points on a mortgage rate decides whether someone can afford to keep their house or not, then they can't afford to keep their house. They're paying too much. By continuing to pay too much, they'll divert their would-be savings to an asset that's likely twice as expensive as it should be right now, and even if it's not, tends to produce poor returns over long time periods."
Hough himself rents, and has good reasons for doing so. He goes so far as to say that renting would make more sense for most people in this day and age. As a homeowner, and a renter until five years ago, no one appreciates his point more than I. He dumps his "excess cash" (my term, not his) into business investments, which even at 1% profit have a greater yield than the house you live in. (The house you live in generates no yield until you sell it, and even at what most folks call a huge profit, may not cover maintenance during the time of ownership.)
He says if the government intervenes at all, it should do so in a way that will make folks wealthier, not poorer. I like that idea. Let's make sure every homeowner in America gets a comparable favor or cash flow similar to what's being forgiven those who can't pay. Then we'll all be wealthier!
And get my free report "Three Easy Ways to Own Your Home Sooner". You can also leave your name at the end of that report for more free tips on saving thousands by avoiding mortgage interest.
Article Source: http://EzineArticles.com/?expert=Lin_Ennis
http://EzineArticles.com/?Mortgage-Bailout---What-Does-It-Mean-for-Homeowners?-Too-Little-Too-Late-or-Just-Plain-Wrong?&id=935659
Best Refinance Home Mortgage Loan Rate Specific links
Kid In Space
- Watch as this kid gets launched into space
-- http://www.break.com/
New Rap Music
- Search Emerging Artists & Help Vote Them Into Stardom. Join Today
-- http://www.ourstage.com/
Watch Free Videos At Mevio!
- Tons of Free Videos, Only At Mevio.com
-- http://www.mevio.com/
Octane TV
- Watch Free Motorized Videos. Drifting, Racing, Crashing Cars, Motorcycles & Hot Girls
-- http://www.octanetv.com/
Flow Tv
- Freshest music entertainment featuring the best of all things Hip Hop. LIVE peformances, VIP interviews & exclusive footage on demand.
-- http://www.flow.tv.com/
Best Refinance Home Mortgage Loan Rate News
Loan giants' woes push rates up - San Jose Mercury News
 ABC News | Loan giants' woes push rates up San Jose Mercury News, USA - Even as policy-makers rushed to support the two companies, home loan rates approached their highest levels in five years. The average interest rate for ... Video: Paulson talks up mortgage plan Debt capitalism self-destructs Taxpayers, ready to bail out GSEs? |
US MBA's Mortgage Applications Index Decreased 6.2% Last Week - Bloomberg
 BBC News | US MBA's Mortgage Applications Index Decreased 6.2% Last Week Bloomberg - The Mortgage Bankers Association's index of applications to buy a home or refinance a loan fell to 489.6 in the week ended July 18 from 522.2 the prior week ... Ahead of the Bell: Mortgage Applications |
Auction to save woman’s home - HeraldNet
Auction to save woman’s home HeraldNet, WA - The goal is to earn $18000, enough money for a down payment and a financial cushion to allow her to refinance and get a traditional 30-year fixed rate loan. ... |
Washington Mutual, Inc. Q2 2008 Earnings Call Transcript - Seeking Alpha
Washington Mutual, Inc. Q2 2008 Earnings Call Transcript Seeking Alpha, NY - Turning to our home equity portfolio, we have reduced our unfunded home equity loan exposure by 30% since the beginning of the year. At the end of June, ... |
Loan modification saves home - OCRegister
Loan modification saves home OCRegister, CA - By MATHEW PADILLA John and Grayce Coffman got a killer deal on their Fullerton home's mortgage – just 1 percent interest for five years. That's a rate any ... |
Inside Wall Street: That Ticking Sound You Hear Out in the ... - Money Morning
 The Consumerist | Inside Wall Street: That Ticking Sound You Hear Out in the ... Money Morning - First, troubled borrowers will have to get lenders to forgive existing loans and take the write-off so that borrowers can refinance with an FHA loan. ... What It Takes to Get a Mortgage Now Loan program may help borrowers in trouble Imminent housing bill full of hope but few answers |
Making the temporary loan limit permanent - San Jose Mercury News
Making the temporary loan limit permanent San Jose Mercury News, USA - "This will also make more affordable interest rates available for families regardless of where they live because of the added liquidity to the mortgage ... |
Bank of Florida Corp.'s Strong Capital Level Continues to ... - MarketWatch
Bank of Florida Corp.'s Strong Capital Level Continues to ... MarketWatch - Total borrowings, primarily advances from the Federal Home Loan Bank, were $201 million at June 30, 2008, up $3 million during the past 90 days. ... /SECOND AND FINAL ADD -- CLTU045 -- SunTrust Banks, Inc./ First Horizon National Corporation Q2 2008 Earnings Call Transcript Brookline Bancorp Announces Second Quarter Earnings and Dividend ... |
Foreclosures set new mark - San Diego Union Tribune
 San Diego Union Tribune | Foreclosures set new mark San Diego Union Tribune, United States - That has made it difficult for distressed homeowners to refinance and fueled the rise in mortgage failures. “It would not surprise me if we peak in mortgage ... |
HEARD ON THE STREET - Wall Street Journal
 Boston Globe | HEARD ON THE STREET Wall Street Journal - Adjustable-rate mortgages aren't the only problem. Wachovia also has nearly $62 billion of home-equity loans that are showing higher loss rates. ... Wachovia Corp. Q2 2008 Earnings Call Transcript Wachovia Details 2nd Quarter Loss; Outlines Initiatives to ... |