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HLS
ParticipantNot sure what other banks did, but as far as WAMU HELOCS are concerned, the Fed funds rate cut that took effect on Sept 10th was not reflected to borrowers until Nov. 1st, affecting the Dec payment.
Also,Many subprime ARM loans have margins of 5% or higher.
Many resets could be based on a 12 month average rate which is figured 45 days before a loan resets. They do not simply use the lower current index on the day of adjustment.Many people will still have large jumps in payment that will not be affordable. Most people cannot tell you what their index & margin even is, and what their payment will go up to if it is less than the max jump, which is often 2pts, and converts to an amortized payment rather than interest only.
A 40% increase in payment is not unusual.
ParticipantThe original terms of “FHA Secure” required a minimum of 3% equity. The fees to get that FHA loan aren’t cheap.
Although Paulson plan is being presented as NOT being a bailout plan because it doesn’t involve govt money, it IS a bailout plan for some lenders and Paulson’s Wall Street buddies. It’s not in the best interest of the homeowner who is upside down and living in a house that they cannot afford.
One premise of the plan is that 5 years will give the market time to recover, (which is a laugh)
It’s just making the problem somebody else’s in 5 years, with investors facing larger losses at that time.Most that are involved in creating this plan today will be gone, dead or retired, and in complete amazement someone will be called back into service as a “consultant” at high pay to continue the myth that the problem can be solved.
In an election year, it is an attempt to prevent a complete collapse of housing. The “orderly chaos” will extend so that people lose houses to FC over a longer period of time, rather than all at once.
Some will bleed their savings/retirement/piggy banks making a payment that they cannot afford, falsely thinking that the market will recover,eventually losing their house anyway.
What many people just cannot accept is that the heights of the bubble was only an opportunity of a lifetime to sell out, not to buy in. The correction simply cannot happen, any more than the NASDAQ is going back to 5000 anytime soon.
Housing prices cannot be artificially supported any more than the price of inflated dot com stocks could.
ParticipantThe original terms of “FHA Secure” required a minimum of 3% equity. The fees to get that FHA loan aren’t cheap.
Although Paulson plan is being presented as NOT being a bailout plan because it doesn’t involve govt money, it IS a bailout plan for some lenders and Paulson’s Wall Street buddies. It’s not in the best interest of the homeowner who is upside down and living in a house that they cannot afford.
One premise of the plan is that 5 years will give the market time to recover, (which is a laugh)
It’s just making the problem somebody else’s in 5 years, with investors facing larger losses at that time.Most that are involved in creating this plan today will be gone, dead or retired, and in complete amazement someone will be called back into service as a “consultant” at high pay to continue the myth that the problem can be solved.
In an election year, it is an attempt to prevent a complete collapse of housing. The “orderly chaos” will extend so that people lose houses to FC over a longer period of time, rather than all at once.
Some will bleed their savings/retirement/piggy banks making a payment that they cannot afford, falsely thinking that the market will recover,eventually losing their house anyway.
What many people just cannot accept is that the heights of the bubble was only an opportunity of a lifetime to sell out, not to buy in. The correction simply cannot happen, any more than the NASDAQ is going back to 5000 anytime soon.
Housing prices cannot be artificially supported any more than the price of inflated dot com stocks could.
ParticipantThe original terms of “FHA Secure” required a minimum of 3% equity. The fees to get that FHA loan aren’t cheap.
Although Paulson plan is being presented as NOT being a bailout plan because it doesn’t involve govt money, it IS a bailout plan for some lenders and Paulson’s Wall Street buddies. It’s not in the best interest of the homeowner who is upside down and living in a house that they cannot afford.
One premise of the plan is that 5 years will give the market time to recover, (which is a laugh)
It’s just making the problem somebody else’s in 5 years, with investors facing larger losses at that time.Most that are involved in creating this plan today will be gone, dead or retired, and in complete amazement someone will be called back into service as a “consultant” at high pay to continue the myth that the problem can be solved.
In an election year, it is an attempt to prevent a complete collapse of housing. The “orderly chaos” will extend so that people lose houses to FC over a longer period of time, rather than all at once.
Some will bleed their savings/retirement/piggy banks making a payment that they cannot afford, falsely thinking that the market will recover,eventually losing their house anyway.
What many people just cannot accept is that the heights of the bubble was only an opportunity of a lifetime to sell out, not to buy in. The correction simply cannot happen, any more than the NASDAQ is going back to 5000 anytime soon.
Housing prices cannot be artificially supported any more than the price of inflated dot com stocks could.
ParticipantThe original terms of “FHA Secure” required a minimum of 3% equity. The fees to get that FHA loan aren’t cheap.
Although Paulson plan is being presented as NOT being a bailout plan because it doesn’t involve govt money, it IS a bailout plan for some lenders and Paulson’s Wall Street buddies. It’s not in the best interest of the homeowner who is upside down and living in a house that they cannot afford.
One premise of the plan is that 5 years will give the market time to recover, (which is a laugh)
It’s just making the problem somebody else’s in 5 years, with investors facing larger losses at that time.Most that are involved in creating this plan today will be gone, dead or retired, and in complete amazement someone will be called back into service as a “consultant” at high pay to continue the myth that the problem can be solved.
In an election year, it is an attempt to prevent a complete collapse of housing. The “orderly chaos” will extend so that people lose houses to FC over a longer period of time, rather than all at once.
Some will bleed their savings/retirement/piggy banks making a payment that they cannot afford, falsely thinking that the market will recover,eventually losing their house anyway.
What many people just cannot accept is that the heights of the bubble was only an opportunity of a lifetime to sell out, not to buy in. The correction simply cannot happen, any more than the NASDAQ is going back to 5000 anytime soon.
Housing prices cannot be artificially supported any more than the price of inflated dot com stocks could.
ParticipantThe original terms of “FHA Secure” required a minimum of 3% equity. The fees to get that FHA loan aren’t cheap.
Although Paulson plan is being presented as NOT being a bailout plan because it doesn’t involve govt money, it IS a bailout plan for some lenders and Paulson’s Wall Street buddies. It’s not in the best interest of the homeowner who is upside down and living in a house that they cannot afford.
One premise of the plan is that 5 years will give the market time to recover, (which is a laugh)
It’s just making the problem somebody else’s in 5 years, with investors facing larger losses at that time.Most that are involved in creating this plan today will be gone, dead or retired, and in complete amazement someone will be called back into service as a “consultant” at high pay to continue the myth that the problem can be solved.
In an election year, it is an attempt to prevent a complete collapse of housing. The “orderly chaos” will extend so that people lose houses to FC over a longer period of time, rather than all at once.
Some will bleed their savings/retirement/piggy banks making a payment that they cannot afford, falsely thinking that the market will recover,eventually losing their house anyway.
What many people just cannot accept is that the heights of the bubble was only an opportunity of a lifetime to sell out, not to buy in. The correction simply cannot happen, any more than the NASDAQ is going back to 5000 anytime soon.
Housing prices cannot be artificially supported any more than the price of inflated dot com stocks could.
ParticipantOnline banks that are FDIC insured still pay the best rates. There are 7 banks that pay at least 5% APY for liquid money, bit more for CD’s.
If/When FDIC steps in, funds have been available the NEXT business day,without delay.
Rates could drop today with a FED drop. The desperate are paying more than anyone else, and the FDIC is allowing it.
Bubba,you said: “They offered a bank draft, but they get 5 days float out of that also” so what…
If you deposit that draft into any normal bank, you should get credited THAT DAY and start collecting interest, even if the funds haven’t been released.What’s wrong with that ?
ParticipantOnline banks that are FDIC insured still pay the best rates. There are 7 banks that pay at least 5% APY for liquid money, bit more for CD’s.
If/When FDIC steps in, funds have been available the NEXT business day,without delay.
Rates could drop today with a FED drop. The desperate are paying more than anyone else, and the FDIC is allowing it.
Bubba,you said: “They offered a bank draft, but they get 5 days float out of that also” so what…
If you deposit that draft into any normal bank, you should get credited THAT DAY and start collecting interest, even if the funds haven’t been released.What’s wrong with that ?
ParticipantOnline banks that are FDIC insured still pay the best rates. There are 7 banks that pay at least 5% APY for liquid money, bit more for CD’s.
If/When FDIC steps in, funds have been available the NEXT business day,without delay.
Rates could drop today with a FED drop. The desperate are paying more than anyone else, and the FDIC is allowing it.
Bubba,you said: “They offered a bank draft, but they get 5 days float out of that also” so what…
If you deposit that draft into any normal bank, you should get credited THAT DAY and start collecting interest, even if the funds haven’t been released.What’s wrong with that ?
ParticipantOnline banks that are FDIC insured still pay the best rates. There are 7 banks that pay at least 5% APY for liquid money, bit more for CD’s.
If/When FDIC steps in, funds have been available the NEXT business day,without delay.
Rates could drop today with a FED drop. The desperate are paying more than anyone else, and the FDIC is allowing it.
Bubba,you said: “They offered a bank draft, but they get 5 days float out of that also” so what…
If you deposit that draft into any normal bank, you should get credited THAT DAY and start collecting interest, even if the funds haven’t been released.What’s wrong with that ?
ParticipantOnline banks that are FDIC insured still pay the best rates. There are 7 banks that pay at least 5% APY for liquid money, bit more for CD’s.
If/When FDIC steps in, funds have been available the NEXT business day,without delay.
Rates could drop today with a FED drop. The desperate are paying more than anyone else, and the FDIC is allowing it.
Bubba,you said: “They offered a bank draft, but they get 5 days float out of that also” so what…
If you deposit that draft into any normal bank, you should get credited THAT DAY and start collecting interest, even if the funds haven’t been released.What’s wrong with that ?
ParticipantChris, Chris, Chris, No cost DOES mean that you are paying more, each and every month for the life of that loan.
There is NO other possibility.Getting a GFE is fine, but until you are locked in AND approved, talking about the rate is like talking about the weather. It changes.
Chris, if you are getting loans to keep longer than 5 years, in most cases that no cost loan is a HUGE mistake.
It ABSOLUTELY, positively DOES mean that you are paying a higher rate and higher monthly payment for the life of the loan.
It’s comments like yours from people who THINK that they know what they are talking about but obviously haven’t got a clue, that just make me laugh.A $5000 rebate to the broker might mean $150 a month in higher payments, which is $1800 a year net cost to you.
FOR THE LIFE OF THAT LOAN.
The ONLY way that there is a commission is when the borrower is charged a higher rate than they actually qualify for.There is NO commission at the PAR rate, not a penny.
If you don’t understand this, then you’ve been lied to.The par rate for a 30 YR fixed was 5.50% last week. It was 5.875% yesterday. Your friend with the no cost loans was probably well over 6% last week.
It’s obvious that she’s got you fooled, and here you are recommending her like you are an expert, but you don’t even know what you are talking about.
Welcome to America!
PS: I am in the biz, and don’t lie to people about what the best rates are or fool them into believing that a no cost loan isn’t costing them anything.
Many/most people in the biz will lie to you, and it does amaze me that they still get referred to.
Your friend may or may not be on the level, but from what you appear to know, I’m not so sure that you got the best rates that you could have.Ignorance is bliss!
ParticipantChris, Chris, Chris, No cost DOES mean that you are paying more, each and every month for the life of that loan.
There is NO other possibility.Getting a GFE is fine, but until you are locked in AND approved, talking about the rate is like talking about the weather. It changes.
Chris, if you are getting loans to keep longer than 5 years, in most cases that no cost loan is a HUGE mistake.
It ABSOLUTELY, positively DOES mean that you are paying a higher rate and higher monthly payment for the life of the loan.
It’s comments like yours from people who THINK that they know what they are talking about but obviously haven’t got a clue, that just make me laugh.A $5000 rebate to the broker might mean $150 a month in higher payments, which is $1800 a year net cost to you.
FOR THE LIFE OF THAT LOAN.
The ONLY way that there is a commission is when the borrower is charged a higher rate than they actually qualify for.There is NO commission at the PAR rate, not a penny.
If you don’t understand this, then you’ve been lied to.The par rate for a 30 YR fixed was 5.50% last week. It was 5.875% yesterday. Your friend with the no cost loans was probably well over 6% last week.
It’s obvious that she’s got you fooled, and here you are recommending her like you are an expert, but you don’t even know what you are talking about.
Welcome to America!
PS: I am in the biz, and don’t lie to people about what the best rates are or fool them into believing that a no cost loan isn’t costing them anything.
Many/most people in the biz will lie to you, and it does amaze me that they still get referred to.
Your friend may or may not be on the level, but from what you appear to know, I’m not so sure that you got the best rates that you could have.Ignorance is bliss!
ParticipantChris, Chris, Chris, No cost DOES mean that you are paying more, each and every month for the life of that loan.
There is NO other possibility.Getting a GFE is fine, but until you are locked in AND approved, talking about the rate is like talking about the weather. It changes.
Chris, if you are getting loans to keep longer than 5 years, in most cases that no cost loan is a HUGE mistake.
It ABSOLUTELY, positively DOES mean that you are paying a higher rate and higher monthly payment for the life of the loan.
It’s comments like yours from people who THINK that they know what they are talking about but obviously haven’t got a clue, that just make me laugh.A $5000 rebate to the broker might mean $150 a month in higher payments, which is $1800 a year net cost to you.
FOR THE LIFE OF THAT LOAN.
The ONLY way that there is a commission is when the borrower is charged a higher rate than they actually qualify for.There is NO commission at the PAR rate, not a penny.
If you don’t understand this, then you’ve been lied to.The par rate for a 30 YR fixed was 5.50% last week. It was 5.875% yesterday. Your friend with the no cost loans was probably well over 6% last week.
It’s obvious that she’s got you fooled, and here you are recommending her like you are an expert, but you don’t even know what you are talking about.
Welcome to America!
PS: I am in the biz, and don’t lie to people about what the best rates are or fool them into believing that a no cost loan isn’t costing them anything.
Many/most people in the biz will lie to you, and it does amaze me that they still get referred to.
Your friend may or may not be on the level, but from what you appear to know, I’m not so sure that you got the best rates that you could have.Ignorance is bliss!
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