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gerdee
LIF Zygote
Member since 2/08 22 total posts
Name:
G
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Thoughts on the Treasury's Proposal to cut Morgage Rates?
Mortgage rates to be possibly cut to 4.5%!
If this happens do you think the RE Market will sky rocket again? Impact on Long Island?
Your thoughts?
Message edited 12/3/2008 10:48:45 PM.
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Posted 12/3/08 10:48 PM  |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
honestly- I don't think it will change much
the problem now isn't the rates
it's people getting approved for loans
it's much harder to get approved now then it was even 3 months ago
NY made stated income loans illegal
every loan is full documentation
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| Posted 12/3/08 11:20 PM |
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OStewarts
LIF Adult
Member since 11/07 1096 total posts
Name:
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
I think it's a great way to stimulate homebuying and will help stabilize prices.
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| Posted 12/3/08 11:30 PM |
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Elbee
Zanzibar
Member since 5/05 10767 total posts
Name:
Me
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
I am not sure what it is going to do or if it will have the affect the government is looking for....
I think now it really is going to depend on how stable jobs are and how fearful people are of a recession.
For example, We're in a position to buy and have been looking seriously, but my DH's company just announced they are slashing benefits and pulling back a lot 'perks'. They are talking about cutting to a 4-day work week (which equals a 20% pay decrease) as a possibility if things get really bad.
So while I can afford to buy RIGHT NOW - I am not sure it's the best idea given the state the economy is in and the uncertainty of the next 6-12 months.
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| Posted 12/4/08 7:43 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
I don't think lowering mortgage rates is the way to fix the housing crisis. I don't see it having any major effect. The credit markets are only just not starting to thaw. I'm not sure even a big cut in mortgage rates will increase banks' confidence in lending money...
That said, if the rates go that low, we will refinance...
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| Posted 12/4/08 8:23 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
I think it will have a ripple effect if it goes through at all. It's not a short term solution.
I think banks will see more mortgage apps and that may spur some interest in loosening credit markets. I think it will certainly produce more refinancing apps if people are solvent and not overleveraged.
This could be good for the mortgage industry.
So it seems like it's a beginning and may have a ripple effect on the economy as a whole but not the whole answer. Nothing is.
eta: I just inquired about refinancing both of my homes. I will save hundreds if the rates drop and then that will be put into savings and the economy.
I think it will help from a refi side.
Message edited 12/4/2008 10:54:25 AM.
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| Posted 12/4/08 9:06 AM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
Well I think it might help people who were on the fence about buying because a lower interest rate will mean lower mortgage payments.
It could also help people who are struggling to pay their current mortgages and are at risk of foreclosing, since again lower rates will mean lower payments.
If the rates do go that low, we will seriously look into refinancing. That would make a huge difference in our payments.
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| Posted 12/4/08 11:59 AM |
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JennasMom
?**?
Member since 11/05 3463 total posts
Name:
does it matter
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
Posted by SweetTooth
If the rates do go that low, we will seriously look into refinancing. That would make a huge difference in our payments.
Same here
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| Posted 12/4/08 4:43 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
Posted by gerdee
Mortgage rates to be possibly cut to 4.5%!
If this happens do you think the RE Market will sky rocket again? Impact on Long Island?
Your thoughts?
IMO, no, not in the immediate future anyway.
like Beth said, banks aren't quick to give loans anymore. you have to be a VERY qualified buyer with a TON of $ for a down payment.
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| Posted 12/4/08 8:34 PM |
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jen919ifer
LIF Adolescent
Member since 7/08 803 total posts
Name:
Jennifer
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
I hope more people start putting their houses up for sale b/c we have been looking since June and are still looking ! It seems very slow right now !!
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| Posted 12/4/08 8:40 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
I also think it will help people who are in danger of foreclosing.
Less forclosures, better for the economy, better for the housing market.
Message edited 12/4/2008 10:05:44 PM.
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| Posted 12/4/08 10:05 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
Posted by Blu-ize
I also think it will help people who are in danger of foreclosing.
Less forclosures, better for the economy, better for the housing market.
actually- those are the last people it's going to help
once you are late on your mortgage- your credit score is so low you would never qualify a rate like that
once you are 3 months down (when foreclosure starts) you don't have a snowballs chance in hell at a re-fi
I am pretty sure that you can't re-fi at all once you are 30 days down- (I keep hearing people at work as clients that on the phone)
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| Posted 12/4/08 11:07 PM |
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
I don't see it making a huge difference. I just ran some quick numbers.
It's been around 6% for a while now.
At 6%, with a $250,000 30 year mortgage, the payments are roughly $1500/month. At 4.5%, the same mortgage is roughly $1,250.
A $250/month saving is great, but most people can't either get approved, or even afford the $1250 payment. If people lost their job, or fear about losing their job, they still can't get a mortgage.
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| Posted 12/5/08 7:58 AM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
Posted by JennasMom
Posted by SweetTooth
If the rates do go that low, we will seriously look into refinancing. That would make a huge difference in our payments.
Same here
I'm thinking, if there were less ramifications for people like us who only bought a year ago, that's a no brainer.
I have no idea though, how refinancing works and how it affects everything.
Has anyone done that recently? What is it like? Looks like I have some research to do!
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| Posted 12/5/08 7:59 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
The program will have to have provisions for people who are in danger of forclosing otherwise the rate of 4.5% won't have the impact they hope. There has to be some provisioning on the criteria to make it work..maybe a different loan and pay back structure.
Either way for refinancing it's moot. I hear it's not going to include it. Phooey for us, but it's not the end of the world.
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| Posted 12/5/08 8:38 AM |
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Bebalina
<3
Member since 6/05 2922 total posts
Name:
N
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
I'm a real estate agent and I can tell you its sooo hard to get a mortgage today. I have clients that have excellent credits scores (above 785) have the cash in the bank and yet are having a hard time getting a mortgage approval.
its actually really sad.
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| Posted 12/5/08 9:16 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
Posted by Bebalina
I'm a real estate agent and I can tell you its sooo hard to get a mortgage today. I have clients that have excellent credits scores (above 785) have the cash in the bank and yet are having a hard time getting a mortgage approval.
its actually really sad.
 there must be some reason why they are not getting approved
high debt to income maybe
you can still get an FHA loan with a lower score (580/600) but you have to meet certain debt to income requirments
that's where most deals are dying these days
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| Posted 12/5/08 9:28 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
The credit markets will have to loosen or it won't work either.
I spoke to Wells Fargo yesterday and he said people are getting approved for loans who have good credit, low debt to income ratios and a decent down payment. I know the markets are much tighter now but I would suspect that things will get better.
The rate of 4.5% is good but there are so many moving parts that have to come into play.
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| Posted 12/5/08 9:30 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
Posted by Blu-ize
The program will have to have provisions for people who are in danger of forclosing otherwise the rate of 4.5% won't have the impact they hope. There has to be some provisioning on the criteria to make it work..maybe a different loan and pay back structure.
.
this is already available to people in that situation thru a loan modification
we have actually been seeing rates come back as low as 3.5%
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| Posted 12/5/08 9:31 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
Posted by Beth1210
Posted by Blu-ize
The program will have to have provisions for people who are in danger of forclosing otherwise the rate of 4.5% won't have the impact they hope. There has to be some provisioning on the criteria to make it work..maybe a different loan and pay back structure.
.
this is already available to people in that situation thru a loan modification
we have actually been seeing rates come back as low as 3.5%
well then lowering the rate to 4.5% will make that rate even lower.
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| Posted 12/5/08 9:57 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
Posted by Blu-ize
.
this is already available to people in that situation thru a loan modification
we have actually been seeing rates come back as low as 3.5%
well then lowering the rate to 4.5% will make that rate even lower.
we'll see- I am not sure banks will go much lower then 3%
but I will find out
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| Posted 12/5/08 10:11 AM |
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SpiceGirl
Dream big
Member since 1/06 2486 total posts
Name:
j
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
Is a loan modification the same as refinancing?
I'm not in danger of foreclosing, but I'd love to modify my loan down to a 3% interest rate.
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| Posted 12/5/08 11:38 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
Posted by SpiceGirl
Is a loan modification the same as refinancing?
I'm not in danger of foreclosing, but I'd love to modify my loan down to a 3% interest rate.
no it's not the same
it's a different process
and a smaller fee
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| Posted 12/5/08 12:53 PM |
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MsSissy
xoxoxo
Member since 3/07 39159 total posts
Name:
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
Posted by SpiceGirl
Is a loan modification the same as refinancing?
I'm clueless about this stuff but would like to know the difference between these 2. What the benefits are and who's eligible.
TIA!
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| Posted 12/5/08 1:01 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: Thoughts on the Treasury's Proposal to cut Morgage Rates?
 I'm happy! We want to buy soon - so it will be good for us in the long run
plus we need to sell our house - so hopefully more people to come in to look and hopefully buy!
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| Posted 12/5/08 6:27 PM |
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