Loan Programs Fixed rate, Adjustable rate ARM, First Time ::
This allows you to qualify for a larger mortgage than would be possible with a fixed-rate mortgage. The Option Arm has a start rate as low as 1.25%.
http://www.firstpatriot.com/loan_programs.aspxHOME |
Why don't they just make all these loans illegal?
Do you think passing a law that everyone must have 10% down and good credit or 20% with fair credit help or hinder?
I think banks are still pushing these interest option loans.
yes, I'll vote for that
I have a better suggestion:
...
Years of bad decisions and stupid mistakes have created an economic nightmare in this country, but $700 billion in new debt is not the answer. As a tax-paying American citizen, I will not support any congressperson who votes to implement such a policy. Instead, I submit the following three steps:
Common Sense Plan.
I. INSURANCE
A. Insure the subprime bonds/mortgages with an underlying FHA-type insurance. Government-insured and backed loans would have an instant market all over the world, creating immediate and needed liquidity.
B. In order for a company to accept the government-backed insurance, they must do two things:
1. Rewrite any mortgage that is more than three months delinquent to a 6% fixed-rate mortgage.
a. Roll all back payments with no late fees or legal costs into the balance. This brings homeowners current and allows them a chance to keep their homes.
b. Cancel all prepayment penalties to encourage refinancing or the sale of the property to pay off the bad loan. In the event of foreclosure or short sale, the borrower will not be held liable for any deficit balance. FHA does this now, and that encourages mortgage companies to go the extra mile while
working with the borrowerâ ”again limiting foreclosures and ruined lives.
2. Cancel ALL golden parachutes of EXISTING and FUTURE CEOs and executive team members as long as the company holds these government-insured bonds/mortgages. This keeps underperforming executives from being paid when they donâ ™t do their jobs.
C. This backstop will cost less than $50 billionâ ”a small fraction of the current proposal.
II. MARK TO MARKET
A. Remove mark to market accounting rules for two years on only subprime Tier III bonds/mortgages. This keeps companies from being forced to artificially mark down bonds/mortgages below the value of the underlying mortgages and real estate.
B. This move creates patience in the market and has an immediate stabilizing effect on failing and ailing banksâ ”and it costs the taxpayer nothing.
Digg - Passenger's arm sucked down French train toilet::
Passenger's arm sucked down French train toilet . DankNugzPlz, on 10/28/2008, -0/+4Would love to see a picture of him since they said the toilet bowl was
http://digg.com/people/Passenger_s_arm_sucked_down_French_train_toiletHOME |
Are Option ARM loans REALLY as bad as everyone talks about ::
We are going with an option ARM and WILL be making the full amortization . your credit could be trashed for some reason, you house value could be down.
http://answers.yahoo.com/question/index?qid=20071021182337AAYlrWhHOME |
III. CAPITAL GAINS TAX
A. Remove the capital gains tax completely. Investors will flood the real estate and stock market in search of tax-free profits, creating tremendousâ ”and immediateâ ”liquidity in the markets. Again, this costs the taxpayer nothing.
B. This move will be seen as a lightning rod politically because many will say it is helping the rich. The truth is the rich will benefit, but it will be their money that stimulates the economy. This will enable all Americans to have more stable jobs and retirement investments that go up instead of down. This is not a time for envy, and itâ ™s not a time for politics. Itâ ™s time for all of us, as Americans, to
stand up, speak out, and fix this mess. AMTRUST MORTGAGE FUNDING - What is a Payment Option ARM Loan Program?::
Payment Options: With the option ARM, you generally have at least two fully Option ARM loan programs are right for you if you'd like to own your
http://www.amtrust.net/arm.phpHOME |
too late now.
And truly, they are a good product when the people using them are honest and realize that it does not matter what something is worth, it only matters what you agreed to pay for it. Unless you were defrauded.
The homeowners were not defrauded. They willingly believed that money was free and house prices always go up.
So, banning them now is kind of like buying fire insurance after the barn burns down.
It's a bit late to save the economy now but yes they should be banned in the future.
If people have an actual financial stake in a house - in the form of a real down payment - they are far less likely to default later, especially if they have an ARM and the interest rate goes too high for them to pay. It makes it too easy to walk away.
And no, banks are not still making these loans, at least not at the moment. They are making virtually no loans right now. I have two friends in the industry and both were doing well a few years ago with mostly conventional loans. Now they can't close anything, even for people with excellent credit and lots of equity. Banks are not lending.
I think this is already happening all around us.
I haven't seen any more ads on T.V. that offer zero down, bankruptcy or no income verification OK... mortgages. At least not here in sunny California. The ultimate trendsetter in the mortgage debacle.
Actually the "loan" market is so "hostile" right now that even people that have good credit, high paying jobs and the neccessary cash for the downpayment are having issues getting approved for mortgages.
The whole market did a 180. And that of course is not helping anything either. There are people out there that by all means should be able to get approved for a house mortgage.
The real issue is the fact that a lot of the mortgages that you describe are still actively on the books of the lenders. A huge amount of them are coming due in 2010 and 2011... and we all know what happens when the $1666 monthly teaser rate resets to a "real" payment closer to $2800 a month. Somebody that makes 50K a year and got approved for a 500K loan with an ARM loan is going to have a rude awakening by 2010 or 2011. About 300 billion dollar worth of those loans are going to reset here in sunny CA. (And no, those aren't included in the toxic mortgage buy out... because they are still "performing" well right now.
 What dress should i wear for an interview ?
 Financial Representative =Insurance salesman?
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Would making 0 down option ARM's illegal help this market?