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I thought this just means that people who already owe 125% of the current value of their homes can refi without having to pay mortgage insurance. The current program goes up to 105%. The refi is only for mortgages currently owned by Freddie and Fannie. No new money is loaned. Just the terms of the current loan are changed. And the borrower pays closing costs.
so the borrower now has to pay closing costs to stay in an overpriced home which will lose even more value when the alt-a housing market melts down. that does not sound like a very good deal.
I thought this just means that people who already owe 125% of the current value of their homes can refi without having to pay mortgage insurance. The current program goes up to 105%. The refi is only for mortgages currently owned by Freddie and Fannie. No new money is loaned. Just the terms of the current loan are changed. And the borrower pays closing costs.
The problem is people cannot afford their homes even if the interest rate was zero! They bought homes that were WAY out of their price range that they could not afford to begin with. The government is fighting to keep THESE people in their homes and is BURNING/WASTING our tax dollars.
They need to kick the DEADBEATS out of the houses and then sell them at realistic prices so people who can afford them will buy. Yes, when they are sold at bargain prices a lot of people will lose money initially, but its a one time shot instead of throwing money towards people who shouldn't be in the homes to begin with.
Its sort of like GM. The government keeps throwing money at them and NOTHING is changing. Eventually they will have to file bankruptcy and start all over anyway. But in the meantime we will lose BILLIONS AND BILLIONS OF DOLLARS. So we should stop throwing money at them! Let them fail and start over. It will cost a lot less this way!
P.S. I do think there are good people who always paid their mortgage on time for SEVERAL years and ended up losing their jobs in this ridiculous recession. These are the only people the government should help stay in their homes. Obviously, once their track record is proven first.
P.S. I do think there are good people who always paid their mortgage on time for SEVERAL years and ended up losing their jobs in this ridiculous recession. These are the only people the government should help stay in their homes. Obviously, once their track record is proven first.
The problem is that they opened the gates to unqualified people so you can't tell the difference anymore. And with this bubble going on for so long there's probably more unqualified folks in homes than qualified ones.
The problem is people cannot afford their homes even if the interest rate was zero! They bought homes that were WAY out of their price range that they could not afford to begin with. The government is fighting to keep THESE people in their homes and is BURNING/WASTING our tax dollars.
They need to kick the DEADBEATS out of the houses and then sell them at realistic prices so people who can afford them will buy. Yes, when they are sold at bargain prices a lot of people will lose money initially, but its a one time shot instead of throwing money towards people who shouldn't be in the homes to begin with.
Its sort of like GM. The government keeps throwing money at them and NOTHING is changing. Eventually they will have to file bankruptcy and start all over anyway. But in the meantime we will lose BILLIONS AND BILLIONS OF DOLLARS. So we should stop throwing money at them! Let them fail and start over. It will cost a lot less this way!
P.S. I do think there are good people who always paid their mortgage on time for SEVERAL years and ended up losing their jobs in this ridiculous recession. These are the only people the government should help stay in their homes. Obviously, once their track record is proven first.
Why would they lower the home to brargain prices to others but not the present home owners. Its alot more cost effectuve to do do with present homeowners as its going to be a huge task and cost in pricing those asets in those bundles.If they do it will be investment groups that get the budles as government can't handle the task its so large.
so the borrower now has to pay closing costs to stay in an overpriced home which will lose even more value when the alt-a housing market melts down. that does not sound like a very good deal.
But it allows people to refi to a lower interest rate. We fall under this program since we put 20% and our house LTV would be 90% right now. This program is not for the people that cannot afford their house. It is for the people who would not be able to refi because of PMI.
Quote:
Originally Posted by ufcrules1
The problem is people cannot afford their homes even if the interest rate was zero! They bought homes that were WAY out of their price range that they could not afford to begin with. The government is fighting to keep THESE people in their homes and is BURNING/WASTING our tax dollars.
This is the refi program not the loan modification program. Two different things.
I don't see the big deal, it's just refinancing, it's not like they are giving the homes to these people. And, it says in the article that it's only eligible to people who are not delinquent on their payments.It's not going to bail anyone out, it just meant to lower interest rates to a reasonable level.
Location: Georgia, on the Florida line, right above Tallahassee
10,471 posts, read 15,837,011 times
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Quote:
Originally Posted by suzie02
But it allows people to refi to a lower interest rate. We fall under this program since we put 20% and our house LTV would be 90% right now. This program is not for the people that cannot afford their house. It is for the people who would not be able to refi because of PMI.
This is the refi program not the loan modification program. Two different things.
I think I get what you said. You can afford the house, but want to save some money with this new plan. You can refi your house, but can't afford the associated costs of refinancing a house. I am having this same problem. I can afford my apartment, but not the associated costs of water, trash pickup, and electricity. What I need is someone to loan me the money to afford that at a low rate of interest, so I can save some money and buy some more delicious nachos.
I'm sure your situation is different than most, but I think most are looking at this as some sort of lifesaver action. I see it as extending a fantasy. Why not just buy something you can afford, without all the fancy tricks? Asking someone to front the "PMI money" is asking someone to help you pay for something you can't pay for.
I know, I know YOU'RE good for it. But recently, Fannie and Freddie have added a whole crapton of bad mortgages to their portfolio. Which is a bad thing. Now, they are going to give those bad mortgages even more credit. But! But! They'll have to review those mortgages for strength!
They didn't review them before. They just took them. Why would I believe the vetting process would be any different this time. In the last throes of a drowning man, he will drag you under to climb on your head. I know this. This is why I toss you a lifering, and say "Climb on that and paddle to shore."
These guys aren't throwing a lifering. They're throwing taxpayers and their kids under the bus, and extending a false hope that makes people believe they are getting a great deal. It's making them slaves to their mortgage. Some don't mind that.
Imagine this. 100 percent. Now imagine 125 percent. Which is another 1/4th. Which means a 30 year loan becomes a 37.5 year loan.
I think I get what you said. You can afford the house, but want to save some money with this new plan. You can refi your house, but can't afford the associated costs of refinancing a house. I am having this same problem. I can afford my apartment, but not the associated costs of water, trash pickup, and electricity. What I need is someone to loan me the money to afford that at a low rate of interest, so I can save some money and buy some more delicious nachos.
Where did I say I can not afford the refi costs? What I do not want to do is pay PMI because if I do then I will not save any money by refinancing. The reason I can not do it is because through no fault of my own the value of my house has dropped 10%. Other people's houses has dropped more. They can afford their current payment but they rather lock into a lower rate for 30yrs. Something they would've been able to do if their house value hadn't fallen off the cliff.
Location: Georgia, on the Florida line, right above Tallahassee
10,471 posts, read 15,837,011 times
Reputation: 6438
Quote:
Originally Posted by suzie02
Where did I say I can not afford the refi costs? What I do not want to do is pay PMI because if I do then I will not save any money by refinancing. The reason I can not do it is because through no fault of my own the value of my house has dropped 10%. Other people's houses has dropped more. They can afford their current payment but they rather lock into a lower rate for 30yrs. Something they would've been able to do if their house value hadn't fallen off the cliff.
Quote:
Originally Posted by suzie02
It is for the people who would not be able to refi because of PMI. .
I gotcha. You can afford it. I think everyone would like to not have to pay PMI.
Kind of a rhetorical question, but if I bought gold for 1000 an oz. and it falls to 800 an oz., should someone help me buy more gold at 1250 an oz.?
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