As Mortgage Rates Rise, More Deals Sink
The suffocating embrace of the subprime crisis is definitely starting to take the wind out of the city’s residential deals. Mortgage brokers say they’re seeing a pronounced uptick in the number of buyers who are backing out of deals because they can’t get mortgages at competitive interest rates. Hardest hit are borrowers who don’t have…
The suffocating embrace of the subprime crisis is definitely starting to take the wind out of the city’s residential deals. Mortgage brokers say they’re seeing a pronounced uptick in the number of buyers who are backing out of deals because they can’t get mortgages at competitive interest rates. Hardest hit are borrowers who don’t have excellent credit histories, or who expected to take out large mortgages and then pay them down with bonuses. A number of brokers say they’re seeing plenty of prospective buyers who didn’t lock in rates and who can’t close on the units because they can’t afford higher-than-expected monthly payments. And these are borrowers who aren’t necessarily on financially shaky ground—a sobering article in today’s Times documents some of the effects of too-lenient lending practices geared towards lower-income earners. Large swaths of working-class enclaves in the boroughs, like parts of central Brooklyn, have turned into new-development ghost towns because of predatory lending practices and concomitant rising foreclosure rates. So it’s becoming clear that the mortgage industry crisis is now affecting the city’s haves and have-nots. Anyone had a deal scuttled recently?
Frustrated New Yorkers Grapple With Loan Rates [NY Times]
Risky Loans Help Build Ghost Town of New Homes [NY Times]
Photo by D.B. Blas
Mortgage rates are going up despite the Fed rate cuts. Too much fear about inflation/falling dollar. Don’t expect the Fed to be able to help you. They only care about short term solutions for Wall Street. The horse is out of the barn.
The WHAT- some people are unwilling to dig an see how things really work. But for the people that don’t believe the Federal Reserve is a private bank built on the idea to make as much money off you as possible, here is an informative video for you all. http://video.google.com/videoplay?docid=-515319560256183936&pr=goog-sl
you can definitely lock in a HELOC – I just spoke to my bank about it since our HELOC currently is adjustable. Am waiting for rates to go down as feds cut rates one more time this fall, then will lock it in.
anyone else see this??
http://www.nytimes.com/2007/09/23/nyregion/23brooklyn.html?_r=1&ref=nyregion&oref=slogin
Looks that way 11:31 – With one exception:
If your Fico is under 720 and you’ve got lots of cash, you are still a “Have”
Has the definition of “Haves” and “Have-nots” been reduced to a FICO score? 720+ you’re a “Have” and under 720 you’re a “Have-not”.
” just wish you would come up with some more new stuff to quote – getting tired of the Jefferson, Wilson, and Acpocolypse now stuff.”
The quotes are very important. Please try to understand them.
“What – Dont get me wrong, I totally respect your right to post your opinion here, even though you resort to calling people a-holes and worse.”
I will try to chill, I took the Meds without water. ; ^ }
“Greenspan had some interesting stuff to say over the weekend – maybe you could start with that…”
Greensperm is trying to CYA. Understand, the FED is a private bank. The FED loans money to our government at interest. This system has NO REASON to exist. That is the MAIN point!!!!!!!!!
Let bring back REAL money.
“Thank God for Ron Paul.”
Your comments sound more like real estate advice from RuPaul.
I pay my bills. Not always — and for years not often — on time, but I get around to them and pay them off. For several years in my early 20s I carried a balance which is dumb but how credit cards make their money. I even defaulted on a credit card bill when I was in college (by typical 21yr dealings of moving around 5x in 3 months and not realizing that I need to tell cc company).
Anyway, my credit score is 740.
Just saying that I don’t really think it’s that big a deal for people with credit scores under 620 and hoping to finance 90% of expensive condos to have to pay 7-8% interest rates.