Write Your Senator for Help (Surprise, Congress: real estate market, mortgage broker, refinancing)

[Captain Bill]

I was just sent this email and I'm posting it on the forum for everyone who is interested in doing some small part in helping to ease the current housing problems



<<<Send your United States Senator a wake up call by asking him or her to support two measures of vital importance to real estate markets across the country.
FHA Reform S. 2338

Ask your Senator to support FHA reform legislation this year. FHA reform will provide existing homeowners with secure and affordable refinancing alternatives and more mortgage options for first-time homebuyers. Increasing the supply of affordable mortgage money is a critical component for bringing stability to the nation’s turbulent housing markets.

Freddie Mac/Fannie Mae (GSE) Loan Limits

Ask your Senator to support legislation that allows regional increases to the Freddie Mac/Fannie Mae loan limits and stress the need for quick Senate action on this vital reform. This change will make lower-cost GSE mortgage financing available to more families trying to buy homes in high cost areas and increase the supply of mortgage money.>>>


Bill

[SOON2BNSURPRISE]

Bill you always give great advice to the masses. How long would it take to get the ball rolling on this?Congress seems to be sleeping at times. As a first time home buyer, I would be interested in anything that can help my situation especially if it happens between now and June. Would love to see Mortage rates go down. What is your take on that? Would an action by the Fed help to reduce rates?

[Captain Bill]

Originally Posted by SOON2BNSURPRISE

Bill you always give great advice to the masses. How long would it take to get the ball rolling on this?Congress seems to be sleeping at times. As a first time home buyer, I would be interested in anything that can help my situation especially if it happens between now and June. Would love to see Mortage rates go down. What is your take on that? Would an action by the Fed help to reduce rates?

It will take a lot of letter writing to every senator throughout the country.

Here is an email that I received from a mortgage broker. She doesn't state the actual rate, but I've emailed her to ask what it is and I'll report it as soon as she gets back to me.

Bill

Lowest Rates in 25 Months
We couldn't have asked for a better Thanksgiving treat than the one we got on Monday: the lowest 30-year fixed-rate in over two years.

• However, each time this interest rate reached previous low points, both last year and earlier this year, it began increasing and didn't stop, climbing over 0.50% in the months that followed!
  
  
• ]Fannie Mae and Freddie Mac tightened guidelines, announcing new Loan-Level Price Adjustments.
  
  
  
• In the first quarter of 2008, most borrowers who have good credit, but have FICO scores below 680, will now be forced either to pay more points at closing or incur a higher interest rate.

The amount that a borrower could be forced to pay, even if they've never been late on a payment, could be as much as 2.00% in points or an interest rate that's 1.00% higher than the going rate.


On a $250,000 home loan, a borrower could have to pay up to $5,000 in order to receive normal market rates! Borrowers choosing the higher interest rate, under the worse case scenario, would stand to lose over $7,500 in just the first three years of the loan.
Choosing to wait could cost you money both in the form of higher market rates and points...

[Captain Bill]

Originally Posted by Captain Bill

Here is an email that I received from a mortgage broker. She doesn't state the actual rate, but I've emailed her to ask what it is and I'll report it as soon as she gets back to me.

Bill

Lowest Rates in 25 Months
We couldn't have asked for a better Thanksgiving treat than the one we got on Monday: the lowest 30-year fixed-rate in over two years.

• However, each time this interest rate reached previous low points, both last year and earlier this year, it began increasing and didn't stop, climbing over 0.50% in the months that followed!
  
• ]Fannie Mae and Freddie Mac tightened guidelines, announcing new Loan-Level Price Adjustments.
  
• In the first quarter of 2008, most borrowers who have good credit, but have FICO scores below 680, will now be forced either to pay more points at closing or incur a higher interest rate.

The amount that a borrower could be forced to pay, even if they've never been late on a payment, could be as much as 2.00% in points or an interest rate that's 1.00% higher than the going rate.

On a $250,000 home loan, a borrower could have to pay up to $5,000 in order to receive normal market rates! Borrowers choosing the higher interest rate, under the worse case scenario, would stand to lose over $7,500 in just the first three years of the loan.
Choosing to wait could cost you money both in the form of higher market rates and points...

This is a follow up email from the mortgage broker where she told me the interest rate:

<<< [SIZE=2]The 30yr rates have dipped below 6% for certain qualified individuals. If you have people on the fence about buying I would highly suggest that now is the time. Prices are down, rates are down and they may not be able to afford the payments on a home if they wait for price to drop 10k but the rates go sky rocketing......[/SIZE] >>>


Bill

[az1969]

While I certainly feel sorry for people at risk of losing their homes let's just remember a few things:

People should be held responsible for their actions. We do not live in Cuba - we live in a free market. it is up to people to educate themselves in the ways of that market especially when committing to a life altering event like buying a house.

The Government should not bail anyone out. See above

There were no complaints when home prices were rising. Now suddenly everyone's pointing fingers. Greed ruled and now everyone's paying the price.

It's about time houses became affordable. Even with a 20% decline many decent hard working people have difficulty affording a home.

Let the market do what it needs to - sure there'll be casualties but it's for the best long term.