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September 30, 2008

Comments

adams

this is a very good thought and i am agree. i want to more know about this to increase my knowledge. thanks for this.

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adams
thanks

Cheap Mortgages

jacksmith

All we are 5 weeks away from most of these assclowns in Congress trying to get re-elected. As some have said, there are many "gutless" folks down in D.C. that "need" to get elected. However, many citizens are against this bill also because it was pitched as "Main Street bailing out Wall Street.
jacksmith
thanks
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uk mortgage

Sorry, but I just can't bring myself to feel sorry for those still on ARMs. If you are still on an adjustable rate mortgage after all that has happened in the last 12+ months there are two causes (in a majority of cases): 1) you just stretched yourself too thin hoping house price would increase forever or 2) you just weren't paying much attention to history and did not protect yourself with a fixed mortgage (interest rates in 1981-82 topped out around 17-19%)

richie

Jackal, thats funny. I like that MBBOR!

Hey ab, the big $300bn thing is not going directly to mortgage rates. If it works well, the bailout will buy existing poor performing mortgage bonds from banks that want to get rid of them and THAT will hopefully make them want to lend again. Which in turn should bring down these mortgage rates. Thats interesting that you heard that ad on the radio. This really means the banks dont want ANYMORE foreclosed property. They'll do ANYTHING just to keep people in their homes. I havent bought any property yet in this crisis but I'm starting to think about it. Florida is certainly at the top of my list. It might be time

Jackal

LIBOR is a joke anyway. The guys who set the rate don't even know where it should be, so it should be no suprise that it so jacked-up today. 2.57% is probably too low and 6.875% is probably too high. We should switch to MBBOR = Monkey Business Blog Overnight Rate.

ab

Wasnt the 300 bb mortgage bailout bill that everyone forgot about supposed to subsidize the teaser folks you are talking about here? Nobody is going to have to pay 9% on a mtge that they were paying 3% on last year. Im down in Florida and i heard an add for a mtge helpline on the radio this morning. Just call and theyll make your mtge whatever you can afford.

richie

Fair enough ab but I believe September 2005 and 2006 had some of the biggest issuances of mortgages in the past few years. Which means many of the special "teaser" rates for 2 or 3 years are expiring right now which means it is entirely possible people can be hit with a NUTTY first adjustable rate and THEN the caps kick in for next year. Coming off the teaser rates there were NO caps in many of these mortgages its only after the "first" reset. I agree they arent priced off the overnight rate but I think you get the idea just because people havent seen the problems of this credit crisis on "Main Street" its comin. big time.

ab

you're fear mongering a bit here, bro. Most mtges reset off 1yr or 6mos libor which is much lower. Plus theve all got caps. Succumb to the fact that every asset on the planet needs to be repriced. followed by the price of service....with $10 rub and tugs its easier to swallow the market(thats what she said) The bailout only delays the inevitable.

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