YOU KNOW WHAT ERKS ME

Wednesday, May 16, 2007

Homeownership the American Way

I don't know how many of you know I do Mortgage Loans for a living. In December I consulted my lock in department about the market trend. They indicated that the Feds might lower the prime interest rate after January. So far... no go. I was hoping to refinance my home.

I was having a conversation with my manager and she said that unemployment was too low and the job market too good to lower rates. For those of you that don't know...the subprime market is falling apart. Those are your stated income loans, poor credit, and arm products.

The way I see it, is the Government set us up for the fall. Lower the rates when no one has a job to actually pay their mortgage, get them a mortgage with the low rate on a stated income loan with an adjustable rat, then kill them by increasing the rate b/c the job market improves.

And at the same time, the job market improves, so the government then makes it impossible for the people who have jobs to get a home by raising the rates and causing the subprime market to fall apart making it hard for people to get into a home with out large amounts of money to put down.

I guess it doesn't effect the law makers that much b/c they already have deep pockets to begin with.
Oh and now...let's do away with the child tax credit and the child care credit and further penalize hard working families in America, just trying to provide a stable home and life for themselves.

ug!

10 comments:

Nicole said...

Maybe it's time for a change in your country...
adios Bush..don't let the screen door hit ya :)

Variant E said...

So after owning a home for 15 years I got lucky and sold that the peak of the local market and then just rented and invested my money elsewhere for now. Price have dipped a little since then and the housing market is stagnant and since the market isn't appreciating here and my landlord does all the landscaping; I don't feel that bad about renting!

e.Craig said...

We ain't seen nothin' yet if the Democrats take the White House and control Congress next election. There are no John F. Kennedys out there.

RWA said...

You should run for office. Of course, it would be an exercise in futility because you would never get any of those other geniuses in D.C. to agree with you or support your ideas.

Ellie said...

oh and of course the popular vote doesn't really count anymore either....don't forget that.

Hypersonic said...

Oh WOW! The government manipulates the market to take money away from its citizens!? I'm shocked!

Ellie said...

Sorry Nic, but it is actually the Democrats that are doing this...not the Republicans this time.

I think we can all agree that a good job market is wanted and is a great thing b/c we have more people contributing to the tax system. You would think that with that happening, taxes wouldn't increase, but the dem's want to do away with the child tax credits, and Bernanke, Chairman of the Federal Reserve Board, is Republican, it's pretty much a joint venture. Bush is responsible for tax cuts...but noe the Democrat's are the majority vote so expect the tax system to be messed with. If Democrats get into office, you better believe the housing rates are going to sky rocket. People think that the housing market is bottoming now...just wait until Hillary gets in.

Just Dave said...

I am afraid you are right. I got lucky - did a no-cost refi at 4.75 fixed and changed my term to 15 years so I can pay it off before retirement. I know that lots of folks are not so lucky. My kids are having fits trying to afford just the downpayment. And, since FHA rules are so weird, I can't even give it to them.

e.Craig said...

You can't tax a nation into prosperity. We need more Democrats like John F. Kennedy, and more Republicans like Ronald Reagon. And ... we need a government that will take fiscal responsibility.

Ellie said...

Just dave... I don't know who you have been talking to, but you can give a gift for FHA. You have to beware of loan officers out there right now. They aren't making the money that they used to, so they are overcharging or putting you into programs that they make more money. NEVER go to a broker, ALWAYS use a direct lender. Then you won't have hidden fees (if they are honest) On FHA loans, you can give the entire 3% as a gift. And in this type of market the seller is likely to contribute 3%. You just have to ask for it. People are desparate to sell their homes. FHA's guidelines are so much better than they used to be. They re-vamped everything last year. I think you will start seeing people going to FHA b/c of the market trends. And for 1st time homebuyers it's a great loan. They say 'but what about MI' as of this year, the mortgage insurance is now a tax right off. Can't beat it!

You need to call me 800-430-2678.

If your kids are serious, and I am licensed in your state, I'll help you out and give you $300 (lender credit) towards closing costs at closing.