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
meant 29 not 19 years.
Hey 10:40 – Never Said HELOC, it is a Home Equity Loan fixed for 19 years. Check Commerce Bank Website for your self…Its one of the best Home Equity Loans out there right now.
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 just wish you would come up with some more new stuff to quote – getting tired of the Jefferson, Wilson, and Acpocolypse now stuff.
Surely you have alot of time on your hands being a broker in bed-suy and all. Maybe you could research some new material.
Greenspan had some interesting stuff to say over the weekend – maybe you could start with that…
Oh BTW – Another comment I agree with you on “Thank God for Ron Paul.” Totally love the guy, but unfortunately he is politically ‘irrelevant’ and wont have any impact on our world.
To the person that suggests that wamu doesnt try to sell of there loans there is some truth to that. WAMU has been 1 of the banks hit the hardest by the subprime meltdown and this is due to there willingness to hold on to there loan portfolio.; I bet you that 1) they are will adjust that strategy and start selling off that risk or 2) increase there rates to make it work keeping that risk in its SPV
“Thx for creating a login ‘The What’
It makes it easier to skip your dribble.”
Yeah but not commenting on it.
I think you will get this weeks first ‘Go Fuck Yourself’ Quote.
To the person that posted that there 2nd loan is a heloc. I suggest you read your loan docs again, I have never heard of a heloc being fixed. You mention that the rate was at 6.74% that seems like a teaser rate to me that will reset at some time in the near future. HOpefully i am wrong
” irrelevant recycled quote ”
Wow it’s shows how much people know about our banking system.
I had a talk with a friend over the weekend, he said “the system needs to operate in this manner to rip you off.
Thank God for Ron Paul.
Thx for creating a login ‘The What’
It makes it easier to skip your dribble.
Oh, Hey What – I was wondering where you been…
I knew you would be weighing in with some irrelevant recycled quote sooner or later.
BTW – As far the the blah blah blah programs, I locked in last week not July.
I do agree with you though (Yes, I actually did say that)in that Fico is the Key. No one wants to lend money to people with low Fico anymore – just dont know what you are getting. Maybe that is the way it should be.