Posted by PJM/MI on 10/31/07 7:04pm
Msg #219127

Gov't cut of interest rate, lenders & creditors

WOOHOO! Ben cut the interest rate by another quarter. So where does that leave US as mobile closers? I fear not any closer to the "glory days" as before. Lenders are still going be very wary of those borrowers with low credit scores and non-verifiable income. And what about getting a decent appraisal? In my "neck of the woods" (or my part of the Mitten), foreclosures abound which means the property values are taking a nose-dive.
I have been hearing rumors that CW is going to help those with ARM'S by doing modifications of the Note....let's all hope so.
I have been seeing more & more lenders WILLING to work with borrowers who are having problems.
All it takes is a phone call to the creditors, and it's amazing how willing they are to work with people. (Now.. not so in 2006-early 2007). I myself found myself in a position where I had to call my creditors, and I was so surprised how willing they are to work with me..even lowering my interest rate. (All is MUCH better now for me).
If the FEDS do step in to help those who are far, far behind...we need to take a look at history and see that when the gov't DOES step in, things seems to turn around. Uncle Sam isn't the bogeyman..at least not all the time.

Reply by Charles_Ca on 10/31/07 8:44pm
Msg #219144

The rate that was cut was the overnight rate, not prime. n/m

Reply by Philip Johnson on 10/31/07 9:00pm
Msg #219146

The prime generally follows the fund rate and I

see where Wachovia has already dropped their prime rate to 7.5. For those of us that have home loans that follow the prime this is welcome news.

Reply by Charles_Ca on 11/1/07 10:44am
Msg #219220

To 7.5% can that be, WAMU is at 6.125% par, I guess you

have to get your bright spots where you can. You may see a sudden rise in the prime after this morning's news and the stock market's dive yesterday. I don't understand why someone would be happy that they were paying 7.5% when most banks' margins are 2%. Oh well one mans dream is another man's lunch! If you're willing to buy down the rate I can get you below 6% today on a 30 year fixed! On a $300,000 that would be the difference between $2,097.64 a month and $1790.65 a month or put another way a difference of $306.99 a month or a savings of $110,516.40 over the life of the loan, are you ready to re-finance?

Reply by Charles_Ca on 11/1/07 11:11am
Msg #219225

Today I can do 6% at par 30yr conforming if you qualify! n/m

Reply by Philip Johnson on 11/1/07 12:37pm
Msg #219255

Charles you know what happens when you assume.

I currently have a 1st position heloc at prime minus 1.5% which offers a great deal of flexibility with my money. I'm well on my way to paying off the house in 5 years and if you need info on this you can contact me and I'll be glad to help you. If you qualify of course.

Reply by SanDiegoCA on 11/8/07 4:45pm
Msg #220280

Not to be argumentative, but the Federal Reserve bank is a privately owned bank, and is not owned or run by the US government.