Interest rates?

I have a 20year 5% fixed i took out in 2003 that i pay with equity accelerator that knocks it down to 15year. So i basically have 10years left.
 
Chapdog said:
They could likley refi to a fixed 30year for 6.5% today. then no 11%.. unless of course they have shitty credit
Click to expand...

They have been trying, but either they have terrable credit, verry likely, I suspect the income to debt ratio is likely very high....

or - They owe more than the house is worth.
 
Jarod said:
They have been trying, but either they have terrable credit, verry likely, I suspect the income to debt ratio is likely very high....

or - They owe more than the house is worth.
Click to expand...


its the credit. perhaps they missed payments. believe me the bank does not want there home to try to sell at steep discount in this market. they want payments on it.
 
Chapdog said:
its the credit. perhaps they missed payments. believe me the bank does not want there home to try to sell at steep discount in this market. they want payments on it.
Click to expand...


How do you know its not that the home is now worth less than they borrowed.
 
if they foreclose its because they have bad credit or want to get out of paying over market value for it.
 
if u buy a 500k home and its now only worth 400k.. wouldn't u rather take the credit hit then the 100K loss? What makes u think the bank wants the loss.
 
Well I think they have a bad income to debt ratio, they have told me they have yet to miss a payment.

I dont know why they cant refinance unless the debt to income ratio will affect that.
 
I also think they are trying to take money out of the house, which I told them I thought would be impossable.
 
Chapdog said:
if u buy a 500k home and its now only worth 400k.. wouldn't u rather take the credit hit then the 100K loss? What makes u think the bank wants the loss.
Click to expand...

Umm are you familiar with the bankruptcy law changes ?
Just having the house reposessed does not get you out of the obligation to pay the additional money. This problem was forseen hence the laws changed to protect the finiancial institutions.
 
Chapdog said:
I have a 20year 5% fixed i took out in 2003 that i pay with equity accelerator that knocks it down to 15year. So i basically have 10years left.
Click to expand...

But why would you want to pay the equity off quicker? I can see the desire with a high interest mortgage, but not with a low interest mortgage.
 
Jarod said:
Well I think they have a bad income to debt ratio, they have told me they have yet to miss a payment.

I dont know why they cant refinance unless the debt to income ratio will affect that.
Click to expand...

I would guess and say that you are correct. If they had negative equity in the home, it would be damn near impossible to refinance... it would also be the cause of such a large jump in rates from 6.5 to almost 11.
 
Superfreak said:
But why would you want to pay the equity off quicker? I can see the desire with a high interest mortgage, but not with a low interest mortgage.
Click to expand...

Because once its paid off i am going to buy a business. cant be worried about loosing a roof over my head and need to plan for lower income for first few years

Also im likely going to buy second home at some point and cant have 2 mortgages at the same time.
 
SO the economy is growing at a rate of 4%, news out today...

How does this affect what the fed wil do with interest rates?
 
Jarod said:
SO the economy is growing at a rate of 4%, news out today...

How does this affect what the fed wil do with interest rates?
Click to expand...
They will lower them in the hopes to fend off the prognostication in the rest of the story.
 
You must log in or register to reply here.
Back
Top