Comments on: Mr Mortgage: In-Depth Look at Mortgage Rates…5.5% Does Not Exist For Most

By: Angela

Angela — Mon, 08 Dec 2008 16:30:41 +0000

Mr. Mortgage, You’re right . these good rates do not exist for 99% of the buyers and refinancers! The problem I see is that peoples credit scores are only getting worse! If CC companies freeze your high credit to where your balance is guess what? Your credit scores drop in a huge way because you appear to be using all available credit to you. . so there for are a risk to the person extending you credit that you are maxed out!! How is this going to make it easier to obtain credit at a decent rate! If FHA wants to be able to offer and make available credit to all that seek it and qualify then why do they make it so hard for small community mortgage companies to offer any financing to their local community clients! Every day I turn someone away because I don’t have FHA. . . maybe when these people go into foreclosure becuase they were not offered or able to obtain financing from their local community broker who has demonstrated ethics, honesty, and truly care about there local community. Maybe then we can get people got off the internet with these lead companies that only care about the yield spread premimum like our mortgage brokers organazation and fight for the small broker who cares about their local community instead. . I knew we were in trouble when our organazation started to call themselves association for mortgage “professionals” instead of mortgage “broker’s” association and the big banks were our biggest funders. . what’s up with that!!! Who is reall getting paid now???

By: Mr. Mortgage’s Guide to the TRUTH! » Mortgage Applications Likely Soared Last Week - But Not Really

Tue, 02 Dec 2008 21:51:39 +0000

[...] Cost BofA $80 Billion Recent PostsMortgage Security Holder Stands-Up – Could Cost BofA $80 BillionMr Mortgage: In-Depth Look at Mortgage Rates…5.5% Does Not Exist For MostMortgage Rates Drop! It Does Not Mean What it Used toFed Buying Agency MBS – Still No ‘Explicit’ [...]

By: Iwasawa

Iwasawa — Tue, 02 Dec 2008 07:13:22 +0000

Dick – Mr. Mortgage’s “Doom and Gloom” also called the end of Wachovia, Washington Mutual, Lehman, Citi, Bear and a few other companies – not to mention the entire sub-prime and alt-a meltdown. So, if its correct, then its not quite accurate to call it ‘doom and gloom’ because his calls have been ‘reality’. So please.. enough with the bullish Wall Street koolaid – spend more time reading Mr. M’s blog, Nouriel Roubini, Calculated Risk, and Mish Shedlock..

I found this website over a year ago – and have read every post since then. Its taught me more about mortgages and the market than anything I learned ‘on the job’.

Also.. for every Lazlo Biriyi video you produce telling me its the bottom, I can produce one from Nouriel Roubini, Jim Rogers or Peter Schiff telling you it is not. Given their track records.. I know where my money is going.

By: Dick

Dick — Tue, 02 Dec 2008 02:06:13 +0000

What is happening is both mortgae rates and credit card rates will go significantly lower. Yes, many can’t get that 5.5% on the 30yr fixed. But when the T-Bond goes below 3% it will be only a matter of time before it is reflected in the mortgage market.

Mr. M, it will take a little while but we will get there. Your article was based only on ONE day and not what is happening over the next few weeks/months. You should hold off on your doom and gloom until the market adjusts.

Today, on http://www.Bloomberg.com Laszlo Biriyi has a video where he says this is the bottom of the market and he gived his reasons. Take a look.

By: Tom Lawler

Tom Lawler — Mon, 01 Dec 2008 22:30:51 +0000

You didn’t mention FHA!!!!!!!!!! For folks wanting to buy a home with not much down and who don’t have perfect credit, FHA rates have plummeted! Sure, there’s the upfront 1.5% MI that can be financed, and the annual 0.5% premium, but the “core” rate has taken a nosedive! In September, almost one-third of home purchases were by buyers who used FHA financing!

By: Javagold

Javagold — Mon, 01 Dec 2008 20:17:38 +0000

Peterb,
There is real trouble out there

By: peterb

peterb — Mon, 01 Dec 2008 20:12:34 +0000

Credit cards seem like and end-game to me. They’re essentially line of credit for individuals. And if you abuse them, they’re cut-off and you lose the accesss to the money. So if you stop performing payments, there goes your line of credit. It’s one thing to default on a mortgage as you can always rent for shelter, but defaulting on credit cards means no more money to use on a monthly basis. So, if the default rates are really soaring on cc, then there’s real trouble out there.

By: BertDilbert

BertDilbert — Mon, 01 Dec 2008 20:10:38 +0000

Javagold

The best solution for credit card debt for first time underwater home buyers looks to be taking free rent through the default and foreclosure process and paying off that high interest debt. If you end up renting for less you win and if you mod for less you win.

Otherwise you are going to get pinched as credit card rates continue to soar. Bernanke says that they may lower interest rates again, but as discussed, the consumer has little to no leeway to translate that to a benefit and Bernanke knows this…

Lower rates at the Fed level are unlikely to translate to credit cards which I expect to climb as defaults mount.

By: Javagold

Javagold — Mon, 01 Dec 2008 19:37:10 +0000

The Credit Cards will be the Next wave to come a crashing and i believe it will make foreclosures look like a day in the park, NO ONE Will be paying their credit card balances shortly, probably make one last run for the Holidays and then its LIGHTS OUT on credit card payments ….. and if the cut credit limits to balances, that will just make it happen even quicker

By: BertDilbert

BertDilbert — Mon, 01 Dec 2008 19:14:56 +0000

Meridith Whitney says that credit card companies are expected to cut back consumer lines of credit by 2 trillion. Many may find that their limits are cut back to their outstanding balance….

Needless to say, that is going to hit nearly everybody’s credit score as they will be shown to be using a significant amount of their available credit. This will naturally make even fewer borrowers fit into the good guy headline rate box…

http://biz.yahoo.com/rb/081201/business_us_finance_research_oppenheimer.html