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[Victory]

Mortgage rates are under 5% for 30 year fixed today.  Does this help of hurt the current mortgage crisis?  I would think this SHOULD start people buying homes. 

[Gumby]

You still have to qualify.  That's the hard part now.  Banks are looking long and hard at who they are lending our taxpayer money to. 

[cheese]

There are many that already have pretty low rates so they wouldn't need to re-fi.

If the crisis was caused by those that defaulted on their previous mortgage they might still have trouble no matter what rate you give them.

So, I don't think this will affect the mortgage crisis at all.

What i think will make a difference is gas prices.  For those that were living paycheck to paycheck that all of a sudden had to pay 3 times what was budgeted in inflated gas prices......they had to skip payments autos and mortgages.  This also drove up many other costs.  Now that gas has dropped it will loosen the financial burden some and put more money into the economy.

[yote19]

Also remember, your house isn't valued at what it once was.  This will affect what you can mortgage on your refi correct?

[Jumbalaya]

Mortgage rates are under 5% for 30 year fixed today.  Does this help of hurt the current mortgage crisis?  I would think this SHOULD start people buying homes. 

Rates are still low, but they are below 6% not 5% as posted above (Unless you see something I don't).

[Victory]

Mortgage rates are under 5% for 30 year fixed today.  Does this help of hurt the current mortgage crisis?  I would think this SHOULD start people buying homes. 

Rates are still low, but they are below 6% not 5% as posted above (Unless you see something I don't).

This is what I do.  Rates repriced today at 4.99.  Been doing this for 23 years and have never seen anything like this.  Qualifing is much harder as Gumby said and that will take its toll.  Also many people losing their homes owe more than they could sell them for so the rates make little difference there.  I am not really thinking refis rather new purchases.  Should ultimatly free up the market some. 

[dogedog]

Mortgage rates are under 5% for 30 year fixed today.  Does this help of hurt the current mortgage crisis?  I would think this SHOULD start people buying homes. 

Rates are still low, but they are below 6% not 5% as posted above (Unless you see something I don't).

This is what I do.  Rates repriced today at 4.99.  Been doing this for 23 years and have never seen anything like this.  Qualifing is much harder as Gumby said and that will take its toll.  Also many people losing their homes owe more than they could sell them for so the rates make little difference there.  I am not really thinking refis rather new purchases.  Should ultimatly free up the market some. 

Time to buy a 2nd home

[Victory]

Mortgage rates are under 5% for 30 year fixed today.  Does this help of hurt the current mortgage crisis?  I would think this SHOULD start people buying homes. 

Rates are still low, but they are below 6% not 5% as posted above (Unless you see something I don't).

This is what I do.  Rates repriced today at 4.99.  Been doing this for 23 years and have never seen anything like this.  Qualifing is much harder as Gumby said and that will take its toll.  Also many people losing their homes owe more than they could sell them for so the rates make little difference there.  I am not really thinking refis rather new purchases.  Should ultimatly free up the market some. 

Time to buy a 2nd home

Did I mention second home loans are REAL tough to qualify for? 

[Gumby]

To be honest I don't really see the low rates loosening things up that much.  With the tougher qualification, the vast majority of people that qualify already own a home.  In order to get the new house they are going to have to sell the old, but who is there to buy it?  Sub-primers?... nope.  The available borrower pool has been shrunken dramatically.

Meanwhile, the banks just sit on that mound of cash given them from you and me... 

[yote19]

and make interest

[cheese]

I think I will re-fi my house (100% of it) and invest all that money in the stock market. 

[Victory]

To be honest I don't really see the low rates loosening things up that much.  With the tougher qualification, the vast majority of people that qualify already own a home.  In order to get the new house they are going to have to sell the old, but who is there to buy it?  Sub-primers?... nope.  The available borrower pool has been shrunken dramatically.

Meanwhile, the banks just sit on that mound of cash given them from you and me... 

Very good points! 

[Victory]

I think I will re-fi my house (100% of it) and invest all that money in the stock market. 

Now that sounds like a good idea.  I would put it all on 23 red

[cheese]

I think I will re-fi my house (100% of it) and invest all that money in the stock market. 

Now that sounds like a good idea.  I would put it all on 23 red

Why not......if you lose the Goverment will bail you out too. 

[Jumbalaya]

To be honest I don't really see the low rates loosening things up that much.  With the tougher qualification, the vast majority of people that qualify already own a home.  In order to get the new house they are going to have to sell the old, but who is there to buy it?  Sub-primers?... nope.  The available borrower pool has been shrunken dramatically.

Meanwhile, the banks just sit on that mound of cash given them from you and me... 

and make interest

But they need it to cover the losses they THINK they might see and expect to get worse because of the credit crunch.......which is why they will need more money to cover even larger losses since there is no money out there to lend..........

[yote19]

All i know is that I have four large construction projects that are on hold because of financing.  This really puts a bite in all of my winter plans. 

[Victory]

All i know is that I have four large construction projects that are on hold because of financing.  This really puts a bite in all of my winter plans. 

This type of thing and the trickle down from it is what is really hurting.  Trying to get new constuction financing is near impossible

[yote19]

you telling me....daughter needs next quarter paid for at college and I need the work.

[dogedog]

Mortgage rates are under 5% for 30 year fixed today.  Does this help of hurt the current mortgage crisis?  I would think this SHOULD start people buying homes. 

Rates are still low, but they are below 6% not 5% as posted above (Unless you see something I don't).

This is what I do.  Rates repriced today at 4.99.  Been doing this for 23 years and have never seen anything like this.  Qualifing is much harder as Gumby said and that will take its toll.  Also many people losing their homes owe more than they could sell them for so the rates make little difference there.  I am not really thinking refis rather new purchases.  Should ultimatly free up the market some. 

Time to buy a 2nd home

Did I mention second home loans are REAL tough to qualify for? 

For some I'm sure they are. 

[Victory]

Mortgage rates are under 5% for 30 year fixed today.  Does this help of hurt the current mortgage crisis?  I would think this SHOULD start people buying homes. 

Rates are still low, but they are below 6% not 5% as posted above (Unless you see something I don't).

This is what I do.  Rates repriced today at 4.99.  Been doing this for 23 years and have never seen anything like this.  Qualifing is much harder as Gumby said and that will take its toll.  Also many people losing their homes owe more than they could sell them for so the rates make little difference there.  I am not really thinking refis rather new purchases.  Should ultimatly free up the market some. 

Time to buy a 2nd home

Did I mention second home loans are REAL tough to qualify for? 

For some I'm sure they are. 

Agreed All you have to do is show you do not need the loan and you qualify. 

[dogedog]

Time to buy a 2nd home

Did I mention second home loans are REAL tough to qualify for? 

For some I'm sure they are. 
[/quote]

Agreed All you have to do is show you do not need the loan and you qualify. 
[/quote]

I find that hard to believe.  So if I have ZERO debt, own my house worth let's say $250K, and have at least 20% to put towards a house worth 200K.  I wouldn't qualify?

[yote19]

Can you help pay down my debt!

[Victory]

Time to buy a 2nd home

Did I mention second home loans are REAL tough to qualify for? 

For some I'm sure they are. 

Agreed All you have to do is show you do not need the loan and you qualify. 
[/quote]

I find that hard to believe.  So if I have ZERO debt, own my house worth let's say $250K, and have at least 20% to put towards a house worth 200K.  I wouldn't qualify?
[/quote]

In this situation you have demonstrated you do not need a loan so yes you would qualify    Ok so I exagerate a bit

[PPPerfect]

But you can't get a loan if you have not had a mortgage in 10 years.  My friend paid off her house 10 years ago.  Went in for a home equity loan to do some renovations.  The bank did not see that she was a good risk, because she has no history of paying a mortgage.  Oh, and she pays off her credit cards every month too.  So just because you are a responsible person living a debt free life, don't assume you are a good credit risk!

[Victory]

But you can't get a loan if you have not had a mortgage in 10 years.  My friend paid off her house 10 years ago.  Went in for a home equity loan to do some renovations.  The bank did not see that she was a good risk, because she has no history of paying a mortgage.  Oh, and she pays off her credit cards every month too.  So just because you are a responsible person living a debt free life, don't assume you are a good credit risk!

Sounds like this person could get a loan pretty easy even in todays market

[EWSoccer64]

But you can't get a loan if you have not had a mortgage in 10 years.  My friend paid off her house 10 years ago.  Went in for a home equity loan to do some renovations.  The bank did not see that she was a good risk, because she has no history of paying a mortgage.  Oh, and she pays off her credit cards every month too.  So just because you are a responsible person living a debt free life, don't assume you are a good credit risk! <<<<

I laugh because I have run into a similar situaiton.

I am thinking of actually buying a new car just to establish a current debt history so that I can borrow 50% LTV on a property.............

Sheesh.......

[cheese]

You can't get a loan if you have not had one in over 10 years?

How does someone become a 1st time home buyer then?  If they never had a lone before why wouldn't they qualify?

[Victory]

There are a few programs out there for first time home buyers.  The same programs would work great for the people above who have not had mortgage payments for years or have never had a mortgage.  For first time home buyers much importance is put into how they did paying rent. 

[EWSoccer64]

>>>There are a few programs out there for first time home buyers.  The same programs would work great for the people above who have not had mortgage payments for years or have never had a mortgage.  For first time home buyers much importance is put into how they did paying rent.  <<<<

I have to wonder about that.   I have 50 or so rentals that I manage, and no bank, mortgage outfit or credit agency has ever contacted me about the rental history of any current or former tenants.   And we do not report to any credit agency the people who pay on time.   (We do do turn over the bad debts to a collection agency.)

[easternwashington]

moron....why would they contact you!!!....of course you only report the bad credit....50 units and you probably rip everyone off.....