How is interest calculated on mortgages?

I have a mortgage on 拢76000 at a rate of 7.44%





So in my calculations thats 拢82,000





but the mortgage people say ill end up repaying 拢210,000 at 拢450 a month over 40 years.





Can someone explain this to me please?





Many Thanks :DHow is interest calculated on mortgages?
The interest rate quoted is the interest you pay PER YEAR. As you mention, you are taking the loan for 40 years.





Each year you pay a little more on principle then the previous year, thus a little less interest each year. Over the course of 40 years of doing this, the loan balance gets to zero. This is called loan amortization.





So, in the first year you will pay interest of 7.44% on 76,000. That is interest of 5,654 in the first year.





Normally, in the first year, your actual payments would total about $6,000 (500 per month). This means the extra $339 reduces your principal by that much.





So in the second year you will pay interest of 7.44% on $75,631. That is interest of 5,629. Which means you pay 371 of principle





This goes on down the line for 40 years. Each subsequent payment has a higher amount going to principle, until the last payment, when the loan is totally paid off.





However, the numbers you provide from the mortgage people do not quite tie together. It is close, but not 100%. You cannot fully amortize your loan of 76,000 at the stated interest rate over exactly 40 years by paying $450 per month. The payment would be almost $500 per month to do this.How is interest calculated on mortgages?
There is some information missing in this problem. You need to ask the mortgage people how often that rate is compounded per year. If you can give me that information, then I can help you. I took a course in financial mathematics, so I know all the math like the back of my hand.





To add details:


1. On the page for your question, click on the ';Edit'; button, which has a pencil next to it.


2. On the drop-down menu, click on ';add details';.





Also, your mortgage people are terrible at math:





If you pay 450 a month, then that's a total of 450 * 40 * 12 = 216,000 in 40 years. If you are not comfortable with this incompetence, then you should use a different company.
interest is a difficult thing to explain. I think your math was done yearly correct? Don't forget to compound it...





With a mortgage you pay interest every month on the entire unpaid balance.





Yes you pay interest every month.. on a 76,000 @ %7.44 you would pay about 472 interest the FIRST MONTH





This website explains it the best





http://michaelbluejay.com/house/interest.html

cosmetics

the bees

Who is offering the best mortgages right now?

Need to take out a 387,000 dollar mortgage. Putting 5% down. What fees are negotiable? Which fees arent? What is my best move?Who is offering the best mortgages right now?
I would suggest looking at


http://www.bankrate.com/





Your situation will be unique. Since you aren't at the 80% Loan to value mark, you may want to look at Lender MI. That way you don't have to pay PMI, which on a house that size it will take a while to get to 80% LTV. So I woul go with lender MI because you will only have to pay probably .5% more in interest rate and not have PMI. That means right now you probably could get a mortgage at 6.25%. which is pretty good. considering your loan to value.





Or you could go with a two loans an 80% loan and 2nd mortgage loan, but generally the 2nd is much higher rates. So you need to look at the whole picture.





My first house I bought with lender MI, I had 6.625% which was O.K. but now that I have been there for 2 years I now refinanced the whole thing to a 15yr fixed rate @ 4.625%


So I got that working for me, which is nice.





As far as the Fees are concerned they are pretty standard in the retail business, if you go wholesale different brokers charge different broker fees.





Retail generally has lower fees but higher rates


Wholesale generally has higher fees but lower rates





based of the size of your mortgage you may want to get a broker working on it for you. Just be wary of their fees. Brokers get more on bigger loan sales. Add to your question if you need better clarification.


Oh and keep tabs on the bond market 10yr Treasury notes in particular they drive when it is best to lock in a rate.


That is why I got 4.625% because I timed it perfectly. That is without buying the rate down too. And I just closed on the 8th of February so things have changed drastically.Who is offering the best mortgages right now?
Your best move is to not go with people who are in here spamming for business and who will email you solicitations.





What is negotiable depends on the lender and the title company, but those fees are negotiable. Ask questions and negotiate the fees down.





I always recommend that you look at the total package, make sure you are comparing apples to apples.

What Happens To The Mortgages On All The Homes Destroyed In The Midwest?

I'm sure people had to have homeowner's insurance, but most had no flood insurance...sooo...If the people have lost everything and the insurance isn't going to cover their losses...then what happens to the mortgage loan that they owed? Will they go into foreclosure? Then the bank will own the land and the debris?If they do, will the banks be the next institution to fail?What Happens To The Mortgages On All The Homes Destroyed In The Midwest?
The banks are left holding the bag

Help me find a good web article on early payoff of mortgages?

All articles I can find on the web advise people AGAINST early payoff of their mortgages, saying ';there are better uses for your money';.





Can you help me find an article that advocates FOR early payoff? Please post the link.





ThanksHelp me find a good web article on early payoff of mortgages?
I don't know of any articles, but the AGAINST group usually point out the tax break that you will loose from paying it off.





HOWEVER, I usually go by the rule of thumb that unless you can find a savings account that pays a higher rate then what you have to shell out for your mortgage. Then pay the sucker off.





Make sure you don't have a pre-payment penalty on your mortgage though.Help me find a good web article on early payoff of mortgages?
There is a lot of misinformation about the benefits of not paying off a mortgage and very few sites that advocate paying it off.





As an example, Dave Ramsey has advised people not to pay off a mortgage (even for people in their 60s) since he states that you can make over 12% in the market with your money. His facts are totally incorrect. Even if you purchased the DOW at the low of 1932 and sold it at the high of 2007, the return would have averaged 8% APY but if you purchased at the high of 1929 and sold at the low of 2009, the return would have averaged only 4.5% APY.





Then there are periods of time that the market has performed very badly. As an example, during a 12 year period during the 1970s-1980s, the market did not increase in value but CDs were paying double digit interest rates. If you had invested in the market during that time, you would have lost 50%-65% of your investment due to inflation. Then of course there is the last 9 years where the market is currently about 30% lower than it was 9 years ago causing losses of well over 50% in real terms (inflation adjusted).





The assumption is that if you hold stocks long enough, the market will perform better than your mortgage. Unfortunately we do not have an unlimited life expectancy and may not be able to support ourselves (to make those big mortgage payments so we could have money to invest in the market) without withdrawing our investments during the hard times when the investments are significantly down making our returns from the market near zero or even losses.





If security and comfort is important to you, pay off your mortgage. No one can predict the future.





The advice that you are getting is similar to the advice that banks accepted over the past several years. Their risk management indicated that they could loan money to anyone and they would always make a profit. Now the banks are in debt $2.7 trillion (according to IMF estimates) and it will take them about 20 years (if they can return to maximum profitability) to pay off that debt. Many will likely become insolvent in the future when interest rates rise once again.

In Alberta, where does one get access to public records about mortgages?

To find out the name of the company holding the mortgage on a certain property, would this information be obtained from Alberta Registries or the municipal council office?In Alberta, where does one get access to public records about mortgages?
You can get a Tax Roll from a municipal office, I think. My real estate agent got me one for a condo we were interested in buying.

Should we get money from the US bailout to pay our mortgages off?

I know the USA runs off of credit.*but* If we where to take part of the bail-out money available and pay off low-end mortgages and middle-class mortgages in the USA(within a certain range and cap, basically non-luxury), we would have all that monthly money to boost the economy by buying things and still have a house and get rid of foreclosures that exist right now. The USA would be a better, safer place to live right now. That would be change...How about that Obama?Should we get money from the US bailout to pay our mortgages off?
That would be so random and unfair to those just over the cut off and especially unfair to those who rent!





Would those poor and middle class people who have 200k in a mortgage for an expensive house get given 200k and then be able to sell the house and get that 200k back while someone who bought a house they could afford at only 70k only get only the 70k?Should we get money from the US bailout to pay our mortgages off?
Are not the bailout funds loaned to recipients? Paying off mortgages with borrowed funds may not give the boost you expect.
Absolutely, and how about two new cars for the garage

Are you tired of people just walking away from their mortgages?

I keep hearing people talking about buying a new home at a much lower price and then short selling their existing home because they owe too much on it. This is a big part of the problem and the home prices will not stabilize until people stop just ';walking away';.Are you tired of people just walking away from their mortgages?
Yes, what gives them the right just because they spent to much!Are you tired of people just walking away from their mortgages?
Actually, that is just a symptom of a much bigger and more complicated problem.





That problem is lenders who think that everyone should own a home and that put people into unrealistic mortgage situations. That, combine with consumer who do not take the time to investigate and educate themselves on exactly what they are getting in a mortgage product are the real problems.





The lending community for the last 10 years has been increasingly focused on making money hand over fist at expense of the consumer. They consistantly lowered the bar for qualifying for mortgages and encouraged consumers to max up their mortgage debt to unrealistic amounts. The lending community set themselves up for the current foreclosure and short fall rate with their short-sighted lending practices.


Additionally, consumers, who in every other area of their life investigate the product until they find the very best, will just blindly agree to whatever the lender tells them without out considering their actual budget or what may happen in the future.





Home prices will not stablize until consumers start educating themselves and lenders start demanding higher standards for borrowers. They need to face the reality that some people just should not own a home because they cannot handle the financial responsibility that goes along with it.
People can walk away from their mortgage/home, but it will also ruin their credit. The mortgage company OWNS your home until you pay it off..when you can't pay for it and the mortgage companies won't help you refi, then there is nothing else they can do, since no one is buying either. President Bush wanted everyone to own a home..I mean everyone, so the mortgage companies were asked to help everyone and the low interest and no down payment is what they came up with. Everyone knew what they were getting into and everyone wants a home. Unfortunately the interest rates went up and it hurt so many people. Everyone can't afford a home and this was a way to get their dream home. Middle class people decided to do the same and buy Way too expensive of homes and really got stuck...too bad. It will get better, but will take more time.
You can't just walk away from a mortgage.
It will catch up with them eventually.

cosmetics

the bees

Why did the interest rate increase on 15 and 30 mortgages, even after the Fed cut rate by .50 basis points?

I checked the interest rates this morning on Yahoo's home page and they increased by .07 on each type of loan.Why did the interest rate increase on 15 and 30 mortgages, even after the Fed cut rate by .50 basis points?
Mortgage rates are long-term debt. Long term debt rates are tied to Treasury securities. If you read about the fed rate cuts you will see that they are cutting the rates on short term loans. These have nothing to do with mortgages.Why did the interest rate increase on 15 and 30 mortgages, even after the Fed cut rate by .50 basis points?
I would not believe what I read. My son is refinancing his house in northern Florida. The rate is 4.72 for a 30 fixed mortgage. Closing costs about $2000. He with have saved over the $2000 in 17 months. This is Bank of America. Each area of the country has different rates.
Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every month%26lt;!--therefore it is always a good idea to keep an eye on what the rates are doing. If interest rates should rise, so will your monthly payments and again, if interest rates were to fall, so would the amount you would have to pay.





http://mortgages-finance.awardspace.com/Mortgage-Rate-Compare.htm





Monthly repayments made on your mortgage and the amount that was borrowed, is determined by current mortgage interest rates. Different--%26gt;companies offer different interest rates so it is a good idea to shop around for the best deal before settling on one particular lender.
Competition, when one bank does it others will follow. The fed rate and the mortgage rate market aren't hand in hand. It should lower because of competition but not because of the fed cut. More money available will make money cheaper to get and eventually that may affect all loans.





My equity line has been affected, it is know a lower % than my fixed. My adjutable is now 5.95 and will drop again due to the recent cut.

Could,nt the western governments not have say halfed the mortgages of ordinary people so helping the banks ?

And the economy.People would have more money in their pockets so go out and buy items so keeping the ball rolling at least.In my my view That would help everybody and would have kept the system going.Could,nt the western governments not have say halfed the mortgages of ordinary people so helping the banks ?
Yes it would, but they don't want to help us do they. They want our money so they take it. Like candy from a baby. We are all so blinded and fooled into thinking money investing is a good thing when we should be using it at full value to buy goods that will make our lives easier now and in the future. Not giving it all to them to playwith and ultimately take from us.





Practicing Shaman... quantum physics rocks.Could,nt the western governments not have say halfed the mortgages of ordinary people so helping the banks ?
If you took the $750 billion dollars doled out last year to the banking turds and the $750 billion that they're going to get this year also, not counting the rest of the bail out dollars given, the government could have instead given every single american family thirteen thousand dollars and change. Can you think of some things that you would have done with that money? I know I can.





But instead, let's give it to the banks so that they can buy up smaller banks that are failing and push more fake money around....





We are *so* scroood.
I think we are starting to see the end of the consumer culture that has been plaguing America for almost 30 years. The economy will have to go through a painful correction before we reach a point of stable growth. By the way, why should we use tax payer money to pay off people's mortgages? My house is paid off, what about me. What about people that rent?
you cant keep the ball rolling if that money is just printed out of thin air...it has to hold some sort of value or the dollar is bound to crash like we are seeing now.





you really cannot properly address the situation with out even mentioning the dollar or the federal reserve. you know, the private international bankers who hold our gold ransome and send the treasury dept the bill for the print job. this creates a loan and the american people are responsible for paying interest off of every one dollar bill that gets printed. It does not make since when we have the constitutional authority to coin our own money without the help of private bankers.

What are the names of companies that offer fixed rate mortgages?

for home owners with bad credit?What are the names of companies that offer fixed rate mortgages?
Just about everyone. What you really need is someone that has programs for people with dammaged credit. Your best bet is finding a broker that is FHA approved and able to find you a mortgage with a good rate.





The people that say you will pay a higher rate are incorrect. Since the demise of subprime, you will either qualify for FHA financing or you will not. You won't pay a higher rate if you have damaged credit, a 570 credit score can get the same rate as a 770 with FHA. Make sure you are dealing with someone who knows the mortgage industry from something more than listening to the news.What are the names of companies that offer fixed rate mortgages?
Good luck finding any kind of mortgage right now, if you have bad credit. I'm sure you've heard the news lately about ';subprime mortgages.'; Find out what that's all about here:


http://en.wikipedia.org/wiki/Subprime_le鈥?/a>
All companies will offer fixed rates but with bad credit your fixed rate will be higher then someone with good credit. You are a risk.
Most lenders offer fixed rates


http://www.clientdirect.net/news/?Pub=23鈥?/a>

Where is the best place to get advise on Mortgages?

My credit score is not very good, who can advise me on what mortgage I can get? How can I find out my credit score?Where is the best place to get advise on Mortgages?
Find out your credit score at http://www.myfico.com. It costs a small fee, but you'll be sure you are getting the accurate, real scores from the three repositories.





Get information about mortgages at http://www.hud.gov. It's free info. It's unbiased. It's a good starting point.





And if you're credit is really not that good, work in the credit first, then on getting the home loan.Where is the best place to get advise on Mortgages?
Get an independent financial advisor who can look at your circumstances and go to the right companies on your behalf. Dont be tempted by ads on the telly as their costs and rates are horrendous. Look up advisors in yellow pages. Good luck.
One of the best things you can do is talk to several loan officers. Only have your credit pulled once and get a copy of it from the lender. Some will give you a copy if you pay for it, some prefer not to as they are in it just to close the deal. But get ALL your options not just one line of BS from one company. Get yourself educated before making any decisions or you will be another person on this site complaining how their mortgage company screwed them over.

If we enter a period of hyperinflation in the US, what would happen to fixed rate mortgages?

for example a 30 year at 6% interest. Do they change it?If we enter a period of hyperinflation in the US, what would happen to fixed rate mortgages?
well from what i understand,





we can only enter a period of hyperinflation if the STUPID board of governors in the federal reserve (headed by ben bernanke) lower the key interest rate any lower (it is currently at 2%, which is down from like 6% just over a year ago).





this is the rate at which commercial banks and the us government can borrow money at, and anything above that rate that the commercial banks charge is pretty much their profit.





considering the recent financial blow to the us economy, it is unlikely that with the fed lowering the interest rate, banks will offer mortgage loans at lower interest rates as well since they have to make their ';lost'; money back.





for that reason, even IF we enter a period of hyperinflation, it is HIGHLY unlikely that banks will lower their 30 year fixed loans, HOWEVER, assuming they did, people with ';6%'; interest rates on their mortgages can refinance their homes into the lower rate, say, assuming the bank offers a rate lower then the 6%.





u must understand though, that refinancing a home into a new lower rate most likely will penalize the borrower in some monetary way, but worst off, the newly refinanced loan will initiate a NEW 30 year mortgage loan. obviously, if you are 15 years into paying off your house, you are better off with sticking with your current 'fixed' mortgage, however, if the interest rate drops from your current fixed 6% and now the banks are offering 5% (assuming u qualify), and if you've only had your mortgage loan for a day to a few years (i'd say 5 years tops), then yeah, it might be beneficial to refinance.

When the government owns 700 billion dollars worth of mortgages are we a socialist country?

Have John McCain and George W Bush turned us into a socialist country with all the bailouts?When the government owns 700 billion dollars worth of mortgages are we a socialist country?
Hmm personally I think the lean to socialism started a bit sooner when the taxpayers dollars were used to fund what was and still remains essentially a private-interest war in a country far far away.


It has been going on now longer than World War II did. G.W.B's business partners must have made some good coin by now off the lives of the soldiers that have died fighting over there - may rest their souls find rest and may they forgive those in power that have sent them to die for their own personal gain.


That seems a bit socialist to me - the government running business/war with public money and its very lives...hmm maybe Fascism is the stronger word - the very thing the brave men and women fought AGAINST in WWII.When the government owns 700 billion dollars worth of mortgages are we a socialist country?
First off socialism is a liberal (left) policy ideology, whereas what you are asking since you are using Bush and McCain by name is whether we are to become a Fascist nation. In either case the answer is NO. This is fixing a probelm bot taking over a corporation to be gov't run. Although in the interim there will be some gov't intervention, these companies will be returned to their shareholders when they are healthy enough to do so.
Absolutely. They might as well call us the ';United Socialist States of America';. It makes me ill that they want to use hundreds of billions of dollars to buy bad mortgages. The value of the dollar is depreciating even more than it already was. This was all done by design. They are not stupid. They deliberately sold homes to people who couldn't afford them knowing that they'd default and the government could intervene. We're in big trouble. I wish people understood the severity of what is happening. The police state is here, nothing has been done to secure our borders and our Constitution is being nullified little by little. Our standard of living is steadily (and drastically) declining while those at the top continue to profit - just like a third world country. The North American Union is going to become a reality - and very soon!!! It's the next phase of the New World Order. Crash the dollar, then implement the Amero. This has been in the works for years.





We're going to be an open border superstate with socialist style totalitarian government which will be very close to communism. It's disgusting!






Since 2003, McCain has been calling for reform in the way Fannie and Freddie were cooking their books. You make a very valid point that our country has moved too far to the left. We do need change - from that direction of movement. We need LESS GOVERNMENT. That would certainly preclude anybody with political sense from bringing in a socialist like Obama. I agree with your point.
Its a safety net, and its temporary. Only Chuckie Schumer wants a bailout.





Besides, Obama says he has ';full confidence'; in Paulson and Bernanke, so put Obama in that sentence also.
You don't seem to understand. These people have always believed in ';corporate welfare'; It's starving people they don't want getting their money.
Yes, the problem is they will be too stupid to realise (or admit) that the public now owns those companies, and can run them as they please.
NO DUDE...THE GOVERNMENT IS JUST FIXING THE PROBLEM MAN,,,THEN THEYLL GIVE IT BACK WHEN IT BACK ON A SMOTTH SAIL DUDE. GET MY DRIFT CAT!!!! DONT VOTE OBAMANATION
I'm going to wait till all the kids are back in school before answering any more of these questions.Today's questions are so childlike.
Yes we finally see the truth about the republicans big govt.


running our country into the ground, selling are soul to china.
No......they turned us into a broke-azz country with all the bailouts of weasels and billions wasted in Iraq.
No, but be glad that you found out that raw capitalism doesn't work.
Too late! We already are! The United States may have a good 20 or 30 years left - Unfortunately.


NOTHING can help.
I think we'll know more monday. The details of that legistlation could go either way. No one has seen it yet.
No, our CONGRESS has

Why don't mortage companies who have lended ARM mortgages just convert the loan to a lower rate fixed?

Just wondering in the whole backwash of subprime lending and ARM loans recently going under, why havent mortgage companies investors just lose less by converting those mortgages to a lower fixed rate to save the company, the consumer and the US economy? Many mortgage companies are out of business now, at it seems if who is left can at least cut some of their losses, it would be good for all.





Please no stupid bashers, I want financial experts to explain this to me. I don't have a mortgage, but would like to buy a house in the near future. I have no degree in business so I havent a clue what this entails.





Thank YouWhy don't mortage companies who have lended ARM mortgages just convert the loan to a lower rate fixed?
I work for one of the largest mortgage lenders / thrifts in the country. As a lender we make profit by pricing your loan for risk based on our margins (profits we sell our loans for to our investors or banks).





An ARM loan is typically priced lower than a 30yr fixed rate. The reason is the length of exposure to the investor who ultimately purchases and/or services your loan (collects payments) is a lot shorter. Once loan is sold off you can ';re-lend'; the money out again.





Or if the loan ';adjusts'; to current rates, the investor makes money at a current rate of interest.





30 years is a long time and lots of things can happen to the market and the individual. If you are an investor, why would you want to lock up your money for 30 years when you can keep lending every 2 years at a decent rate? Theoretically, lets say the mortgage interest rates climb back to where they were in the late 70's/early 80's (15%). 10 years from now you are holding this mortgage note (as an investor) at 7% while everyone else on the block is buying loans and collecting 15% interest. You are losing money at that point.





As far as mortgage companies out of business, the issue has to do with ';liquidity'; not so much loan defaults. Most banks must ';sell'; their loans to investors to free up their capital so they can keep lending it out over and over again. They make money each time they sell a loan depending on the interest rate ';future value'; of the note. Recently, Wall Street investors have stopped buying these loans so lenders are unable to create ';new capital'; to lend out once again. I work for a bank so we borrow from the Fed. We also lend out deposits from our bank branches. Other lenders are up a creek.





Once the loans are sold to investors, the ';lender'; doesn't really care if they convert to a fixed, ARM or whatever. They made their money. Some banks/lenders ';service'; the loans (collect payments) and make money doing that which comes out from the loan proceeds (they collect payments on behalf of the investor who pays them a little bit extra out of each loan they purchase).





';Whole loans'; are also rarely sold on the market. Most loans are sliced/diced into pension funds, mutual fund companies, etc. Technically, ten people could ';own'; a ';piece'; of a loan. This spreads the risk around.





The problem is there is a lot of fraud in the mortgage market. Many people qualified for loans they cannot afford. If they can't afford a short term ARM rate (interest only) they'll never be able to afford a 30 yr fixed payment. There is no incentive for a lender to ';re-write'; loans. It's easier to go out of business....





Also, due to lots of fraud, the investors are forcing the ';lenders'; who made the loans to ';buy them back'; under their purchase agreement. Basically if someone defaults on their first payment or the investor finds fraud, the lender must buy it back. Many lenders do not have enough cash put aside so they just buckle. The same thing happened about 10 years ago.Why don't mortage companies who have lended ARM mortgages just convert the loan to a lower rate fixed?
Greg S is right on. To summarize for him:





1. Banks are not at liberty to change the terms of customers loans because they are not the owners of the note. Many banks that have not sold their loans actually do exactly what you suggested. Wells Fargo Financial, a small branch of Wells Fargo holds all of their loans and have the capability to convert these loans.





2. Banks are going out of business because they were unable to sell their most recently booked arm loans and don't have the capital to hold and service the loans.





3. People stopped buying these loans because the ones that started to roll in masses 2 years ago have all defaulted and the rate of return is no longer there.





You make a great suggestion and trust me, if banks have the capability to change the terms of their loans with clients to keep it from going into foreclosure, they certainly are doing everything they can.





If you have further questions or you need a loan yourself, you can contact me casey.x.casperson@chase.com or caseycasperson.com to verify I'm not some crazy guy answering questions.
If a loan officer puts a person into an A.R.M. without a specific and good reason then I call them Con-officers.





I am a Mortgage Planner so my goal is to fit the loan to the persons needs. If you come in and tell me that you are moving in 4 years (ie-military). Then a 5 year A.R.M. is a good choice.





If you plan to live in that house for an indefinite period of time, then a fixed rate mortgage is probably best for you.





The reason the mortgage companies will not just convert the variable rates to fixed rates is because it is big money for them. In two years on an A.R.M. you are not going to reduce the principal on your loan amount enough to cover the cost of the refinance to the fixed rate.





In other words, after 2 years on an A.R.M. You may have to borrow more money for the second loan than for the first loan in order to cover the closes expenses.





Refinancing a home is expensive and you don't want to do that more often than about 5 years and then I advise my clients that when they refinance in 5 years they should try to reduce the years that they are paying by 10.





Example: First time home buyer -- I put on a 30 year fixed rate. After 5 years they need a bit of debt consolidation and home improvements. They come to me and re-do their loan. We restructure and then refinance for 20 years.





Or


If they are in a pretty solid financial place I suggest that they may want to re-finance with cash out for investments.

Why are refinanced mortgages quoted out w/ separate rates than regular mortages?

If I want to buy a house for $100k or refinance a $200k house with $100k left on the principal balance, why do the rates differ? I'd still be getting a mortgage for $100k either way, no?Why are refinanced mortgages quoted out w/ separate rates than regular mortages?
it depends on the loan to value. In the refi case you are looking at a 50% loan to value. In the purchase scenario you'ree asking 100% ffinancing.





Edit:


It depends on a lot of different things like,


Loan to value


Type of loan - FHA/VA or conforming.


Credit score


Loan amount


Purpose of the loan - Cash out, rate/term?


There are hits or adjustments depending on the things listed.


If you have a loan to value of 50% most if not all adjustments are void so you should have the same rate or slightly better than a purchase.

How is the govt locking down interest rates on mortgages going to ';cost the taxpayer';?

It only prevents predatory lenders from ratcheting up rates on those naive enough to get snared. It prevents banks from losing money and ';the little guy'; from losing his house and credit, but nobody has to pay for it. If the banks were smart they would do this themselves.How is the govt locking down interest rates on mortgages going to ';cost the taxpayer';?
It doesn't, it will actually save the government money in that people losing their homes will require some sort of government aid. But the real problem is allowing S%26amp;L to conduct these practices of bait and switch in the first place and then not doing something about it when it goes bad for them. I want a fixed rate law and no more adjustable rates.How is the govt locking down interest rates on mortgages going to ';cost the taxpayer';?
I have no sympathy for anyone shortsighted enough to sign an adjustable rate mortgage. Just what in the hell did they think was going to happen when their introductory rate expired?





I'll bet these same idiots think Columbia House is going to continue selling them 10 compact discs for 1 cent in perpetuity.
The lending people are watching the market and would have a bunch of repo's ready to sell once the market recovers.





Hey, the market was over inflated and had to correct. A good thing is that by freezing rates, it helps the people get their footing and not loose the house.





My home is still 12% above what I paid for it and holding.
When the Banks lose money on interest rates, who will they pass on their loses too ?? The non-taxpayer ??
I agree
Good question. You get a star for this one.





The lock-down on interest rates is only on ARM's and only those that adjust excessively. My understanding is that this idea is coming from the Mortgage Lenders Associations to start with as a way to police themselves and put the onus of the ';sub-prime crisis'; on the predatory lenders who made the bad loans in the first place.





http://news.yahoo.com/s/ap/20071206/ap_o鈥?/a>





Many of the major offenders have already gone under. The offenders included clauses in their sub-prime contracts to allow these massive adjustments in the first place and then didn't explain this to the borrowers. If they go under for their predatory practices, they will be reaping what they sowed!

What is earnest money with regards to home mortgages?

What is the purpose of this money?What is earnest money with regards to home mortgages?
Earnest money refers to the ';deposit'; you provide when making an offer on the property you are purchasing. It is not related to the mortgage at all except that it is listed on the 1003 (Mortgage Application) as part of the property transaction.





Someone may be using that phrase to get you to pay some sort of application fee for a mortgage application. You may want to find a mortgage provider who does not charge an application fee...there are lots of 'em...





Me2Me2Me3@yahoo.comWhat is earnest money with regards to home mortgages?
a quick web search came up with lots of results but this is the best one i could find for you.
It lets the seller know you are serious about buying the property. The seller keeps the money if you decide to pull out of the sale without a valid reason.
It is a deposit given to the real estate agent to show the seller how serious you are about buying the home. Someone said it is usually $500-$1,000, but its usually more like 1-5% of the sale price of the property.





The lender will take this into account on your asset statement, but it has no other impact on your loan.
earnest money is what you put with your offer when you intend to purchase a property. It shows the seller that you are serious about the purchase and don't intend to back out unless there are problems with the property that aren't already disclosed. Usually the earnest money payment is $500 - $1000. If the seller turns down your offer, you get your money back (the check is not cashed). If the seller accepts your offer, the realtor cashes your check and then will put that money towards your down payment. It's not a negative thing to put earnest money down, we did when we bought our house just a few months ago and everything went really well.

Does anyone know of any really good repayment mortgages out there at the moment?

Have 11 years left on mortgage - of about 拢68000. Wondering if to change?Does anyone know of any really good repayment mortgages out there at the moment?
firstly - what interest rate are you on now????





secondly have a look at -





moneysupermarket.com





and





http://www.topmortgagedeals.co.uk/fixrat鈥?/a>





and





http://www.mortgage-calc.com/mortgage/pr鈥?/a>





the last one tells you an approximate figure of how much you will paying off of your balance per month - I find it quite useful.Does anyone know of any really good repayment mortgages out there at the moment?
They are all the same.





You pay more principle, you lower your balance. The bi-weekly one works well, UNLESS you are paid monthly.





Just pay an extra 100 every month works well too.
In which state are u located? contact parsecloans.com for total consulting
All depends what mortgage you've got know, whether it's fixed or not and how long you got a decent rate for. Interest rates are as high as they've been for a while and another rate rise of .25% is expected this month. You could try moneysupermarket.com, that site looks at lots of mortgages for you

cosmetics

the bees

Why Should I Have to Help Pay To Bail People Out of Their Adjustable Rate Mortgages?

and trouble they got into without my help?





Should I go buy a nice new house I cant afford and expect for you to bail me out?





Let me know. I would Like to start shopping for a house well beyond my means this weekend, if that is the case.Why Should I Have to Help Pay To Bail People Out of Their Adjustable Rate Mortgages?
It irritates me too. And things are getting even worse. 100% loans are gone. Credit standards have been raised--AGAIN. It is going to be very hard for many people to get a mortgage.Why Should I Have to Help Pay To Bail People Out of Their Adjustable Rate Mortgages?
It isnt the people who got ARM's (Adjustable Rate Mortgage) fault. Most people who have an arm can afford the house. Its when the arm Rests thats when they cant afford it. People are told they are approved for an arm when they were turned down for conventional loans. So the lender tells them pay your payments on time and in two years you can refinance. The trouble with that is like now home values are going down. So two years ago you house was worth 150k now its worth 125k. How are you to refinance with an appraisal of 125k. You dont so you keep making your payments trying to sell and mabe you make it out but for most its foreclosure. It really is a sad situation. I hope this helps you understand. Why should we feed starving children? Why should we house the homeless? Why should we give healthcare to the poor or uninsured?
You won't be paying the bail out. It's the grandkids that will face that music.





You're off the hook.

Does anybody know about a new law in Minnesota about getting rid of stated income mortgages?

My wife and I are going to be moving this summer in order to attend a nursing school in Northern Minnesota. The houses that are available in our price range are either money pits or just plain old nasty. So we have decided to build a small 1,400 sq. ft. house that is designed the way we want it and is clean (unlike the other houses in the area) anyway we have run into a problem. Because we are full time students the only mortgage we are able to get is a stated income mortgage, meaning we don't have to prove that we are going to have steady incomes when we move. Well, I got a call from our mortgage lady last week and she said the Minnesota congress just voted to pass a law making these types of mortgages illegal. She said we need to close on a home soon before the Governor signs this into law in order to get anything. Does anybody know anything about this? How long after the Governer signs this will it take effect? Where could I call / write to get more info? Congressman?Does anybody know about a new law in Minnesota about getting rid of stated income mortgages?
Having done a little research...it looks like this bill is a possibilty but far from definite.





The recent subprime market fallout moved mortgage lending to the forefront of the news lately.





Here is what the st. paul pioneer press stated,





'; The primary Swanson-based bill, sponsored by Rep. Jim Davnie, DFL-Minneapolis, is too ambiguous and restrictive, Abed said.





The bill doesn't make clear what is or is not suitable financing for an individual and would make it very difficult for brokers to make stated-income loans 鈥?loans, he said, that are appropriate when borrowers are self-employed or earn inconsistent commissions. Also, tightening up the 5 percent cap on all fees related to making a mortgage would make it almost impossible to write loans under $100,000, he said.





That also worries Lisamarie Sanchez Leadens, a Maple Grove broker who runs a school for mortgage brokers and bankers.





She worries that the bills would make home loans harder to get and cut off minority and low-income families from home ownership.';





Here are two links to articles:





http://www.care2.com/c2c/share/detail/329191





http://www.startribune.com/587/story/1068670.htmlDoes anybody know about a new law in Minnesota about getting rid of stated income mortgages?
As a mortgage broker in Minnesota, this law has been passed around the office in one of the company emails. This is not a sales tactic used by your loan officer. I would look for other mortgage programs that may be able to suit your needs.
It sounds like a cheap high pressure sales tactic.





Lots of small business people qualify for mortgages using stated income loan products. If Minnesota ever passed such a law it would be a nightmare.





You might want to shop for another lender.

What percentage of the bad loans are home mortgages?

The government is shelling out 700 billion dollars to buy the bad loans that are putting the big banks in danger. We are told that the bad loans consist mainly of unpaid mortgages (sub-primes etc). So the government is effectively buying 700 billion dollars of housing. If we estimate the price of one house between 100k$ and 350k$, then the government should be acquiring 2 to 7 million houses. That is, unless we are being misled and that these bad loans were made up of a lot more than just home mortgages...


What percentage of the bad loans are home mortgages?
Mostly mortgages. 700 billion is a shot in the dark, as is the ';rescue'; bill. I'm hoping it helps though I'm still against the passage of it. Paulson and Bush with their smug little smiles on convincing our reps to listen to them rather than the people makes me sick.





The government will, in fact, own houses once they buy these assets. The question is, since the mortgages and thus the housing is government owned, what else will they do with it to mess up the economy? Will they pass no smoking bans on the houses they own? Nobody knows exactly what will happen, but the current ideas being thrown around is the government gets a % of the price of the home when it is sold in the future.





It's just a big mess and will turn into a bigger mess now that the government is involved.What percentage of the bad loans are home mortgages?
Maybe you ought to read that bill very closely. over100 billion is already earmarked for pork projects we were promised by Bush would not weigh this bill down. Now a lie is the foundation and since we infused money into Fannie May back in July, they still had major problems, how long do you suppose it will be before they tell us ';oops we underestimated the cost of the problem';? Right, when the dollar is worth a nickel.

What are the guidelines for FHA bailout for mortgages? What is forgiven after short sale or foreclosure?

Who are FHA lenders for the new program?What are the guidelines for FHA bailout for mortgages? What is forgiven after short sale or foreclosure?
The ';bail out'; is not for foreclosures or short sales. It is a program to prevent both of these and make refinancing easier.





There is also a program to purchase foreclosures, to get them off of the market.What are the guidelines for FHA bailout for mortgages? What is forgiven after short sale or foreclosure?
. All FHA-approved lenders can participate. That is almost all of them in your city.


In some cases the forgiven amount after a short sale is the amount the bank ';lost'; on the eventual sale of the property. Same for a foreclosure.


The guidelines are that the current lender accept a payoff of 85% of the old loan. That amount is then loaned on the new FHA loan. The idea is to get rid of an adjustable rate and now have a fixed rate. Works best for people whose loan is going from 7% to 9% in a few weeks.
That is an extremely broad question. I would go to the HUD and FHA websites to get started.

Why is the Government bailing out American Mortgages and Companies? If you get into the mess get yourself out.?

When i had financial stress several years ago because of medical problems nobody helped me out. I say f all the people out there that are in financil trouble. I'm rich know, keep selling good stocks low. I want to buy up all your houses. Good Times are back, I love people in financial trouble.Why is the Government bailing out American Mortgages and Companies? If you get into the mess get yourself out.?
Well, allot of that money goes to israel (100 billion), a new detention center in Bahrain to move more kidnapped Guantanimo prisoners (600 million)Why is the Government bailing out American Mortgages and Companies? If you get into the mess get yourself out.?
Think about who have had the most mortgage failures. Apply why the government approved a stimulus package which will allow the same failed mortgage holders another shot at the money well with added benefits. Consider the break neck speed at which the stimulus package came about. Then watch the video of the black politician and notice closely his comments in South Carolina when he was talking about the 4 southern states that may turn down the stimulus money.


Stats on mortgage failures:


52% black


39% hispanic


6% oriental/other


3% white





Don't have the answer yet? Keep thinking, it will come to you. Keep this in mind. This money for failed mortgages will never be repaid...........Twice......
i go to work , i pay my bills , i have a nice life.





i don't know why other people do what they do and i put myself in a position where i am effected as little as possible.





being in charge of the whole country is probably a big pain in the butt. i am glad i am not president.
They are dumping money into the hands of the mortgage companies and banks because that is where the politicians have all their money and they don't want to loose it. Soon there will be no middle class. You can't be middle class on $14.00 an hour.
THIS SAME QUESTION KEEPS COMING UP





YOUR GOV. DOESN'T CARE ABOUT YOU. YOU ARE JUST CATTLE TO THEM.


IF YOU DIE THATS JUST ONE LESS CAR ON THE ROAD! OH WAIT A MINUTE ONE JUST TOOK YOUR PLACE.





REMEMBER THE FRENCH REVOLUTION. DID ANYONE LEARN ANYTHING FROM THAT LITTLE EPISODE. MARIE ANTIONETTE DID.
That's what I keep saying. No one bailed me out when I made a stupid mistake and I didn't expect them to. I took responsibility.





Hello Nanny State

Do you think that interest rates on mortgages will go down again?

The company we chose to work with lost our paperwork in the shuffle and now two months later rates are higher. Should we wait it out or go ahead now and refinance?Do you think that interest rates on mortgages will go down again?
finding another mortgage broker is the first thing i would do..get locked in at the lowest rate possible....





odds are that in the short term the interest rates will stay about where they currently are...no one can predict what will happen 6 months from nowDo you think that interest rates on mortgages will go down again?
If you are refinancing the best possible rate you are likely to get in the USA is 2% and that is off the back of Obama's stimulus package for people struggling to meet payments
You can let the rate float... I wouldn't but paymentpillow.com explained it all to me. pretty interesting stuff.

cosmetics

the bees

Are banks beginning to lend for home mortgages?

And, what is the lowest credit score you can have? My credit score isn't the greatest and I'm looking to get pre-approved, but I have heard that the banks are not even giving loans right now even if you have good credit.Any advice?Are banks beginning to lend for home mortgages?
That is not at all true. Not one bit.


Banks have started regulating who they give out loans to.


If you have perfect credit you can get a loan if you put 10% down.


If you have had dings, you will have to put 20% down.


(The way it used to be before this mess started).


You want to put 20% anyway.


This avoids that nasty PMI, which does not go towards principal or interest, and it is not tax deductible.


It's like throwing money away.


/Are banks beginning to lend for home mortgages?
I would say this depends on where you live and your personal situation. The best way to know is to check with your local lenders. Credit scores will count quite a lot now for conventional loans, banks are increasing their due diligence. Certain items may not count as heavily - such as medical expenses that show up on your credit score.





There are still FHA loans, now with increased limits and only requiring 3.5% down payment. The debt to income ratio on an FHA is more lenient than most conventional loans. I don't know that credit score is used, but credit history is. FHA carries MIP (a form or mortgage insurance), but you now can get it dropped after you have enough equity in the property. This is something new. It used to be that MIP was paid for the life of the loan.





You can still get a loan w/10% down payment on conventional, but as noted by another poster, you will have to pay PMI.





[I don't care for paying this to insure the lender against default, but I don't blame them either. When you consider how many people financed with 2 mortgages - a 1st for 80% and a 2nd for 20% of the sales price - and then defaulted, it was amazing.] I don't know if Congress has extended the 2007 (2008?) change allowing deduction of PMI/MIP from your federal tax return on homes purchased in 2008. They should and it should be extended to all of us who are paying PMI/MIP.





Anyway, you may find that it will be harder to get a loan, but if you have the earnings, reasonable debt-to-income ratios, a decent credit history and score you should be able to get a loan.





You may want to check with your real estate agent and loan officer about programs to help home buyers afford to purchase a primary residence. Some municipalities have down payment assistance programs for nurses, teachers, police officers, fire fighters,etc. Some have incentives for purchasing homes in certain parts of the city.





It's no longer a slam dunk, but it's possible that you be able to purchase a home.





Good luck.
If you have your earning than only they will give you loan and that too with pan no IT statement.


They will give money to cheater who give them false reports but not to the honest one. That is why Scams are going on in our country.
with a big enough down payment, so so credit can still get a mortgage, but not at the best rates.

Can someone with a felony record be a loan officer? primarily doing reverse mortgages?

Unfortunately ... yes. Corporations can hire unlicensed agents to be loan officers, and while there should be an effort to do background checks, there often is not. If you do business with a company, make sure to look for and ask for their licensing information.Can someone with a felony record be a loan officer? primarily doing reverse mortgages?
Not in my state or in most states where they require you to be licensed as a loan officer.





You can't even be an LO here if you have a judgement on your credit, so as you can imagine, convicted felons are out of the queston.





Any corporation, with the passing of the new privacy laws, are actually REQUIRED to do background checks on their employees that are handling account and identity sensitive information, if they are an FDIC insured bank.





I know of no bank that would be willing to take a chance like that...a private broker might, but he would be a fool.Can someone with a felony record be a loan officer? primarily doing reverse mortgages?
In Texas you can be a loan officer without a license, so I guess there may not be anyway you are checked out at all. In most states they license this so you would have to check out the laws in your state.

An estimated 2 million adjustable rate mortgages are scheduled to reset by the end of 2008, going from low int

An estimated 2 million adjustable rate mortgages are scheduled to reset by the end of 2008, going from low introductory interest rates to higher rates that in some cases will double or even triple the monthly payment. Its called predatory lending. Thats our money that they loan out after we deposit our paychecks, Its regulated by us, but its regulated in favor of profits for the banking industry. Cant one of us go pay off some senators?An estimated 2 million adjustable rate mortgages are scheduled to reset by the end of 2008, going from low int
I don't get why they call it predatory lending...they should call it retarded borrowing! I guess it's a little of both. When we were presented with the option of an ARM I told the guy who offered it OFF. I was pissed that he even mentioned it. It seems I was the cheese that stood alone. Now look at the mess.An estimated 2 million adjustable rate mortgages are scheduled to reset by the end of 2008, going from low int
Sometimes an ARM mortgage is right for a buyer, sometimes it is wrong. It is only when the mortgage is applied poorly and with bad advice for the sake of profit, is it predatory.





It is not your deposit money, mortgage money comes from specific mortgage bonds that investors buy, not checking and savings accounts.





The borrower has responsibility too, not just the mortgage person. Why would anyone get mad about a professional offering choices to a consumer? Look, if you are only going to be in your home for two years, why pay a higher rate for those two years with a fixed rate loan? Some buyers are actually saavy, and smart - not all borrowers are dumb, and we should quit calling them dumb by placing all of the blame on all of the lenders.





Mortgages don't kill people, the misuse of them does. There is not bad mortgage programs, there is just bad application of mortgage programs at the fault of lenders and/or borrowers
Some it is predatory lending and some of it is greedy and stupid people for buying homes that they couldnt afford and thought the real estate market would do nothing but go up......


Market corrections happen. Welcome to the marketplace

I have a credit card with points. Is there anyway to pay my mortgages with it to earn rewards?

Contact your mortgage company and have your mortgage payment come out of your credit card each month.I have a credit card with points. Is there anyway to pay my mortgages with it to earn rewards?
No point, the interest your paying on the card will always be significantly higher than your mortgage, The extra interest you will pay on the credit card will never make any reward worthwhile.I have a credit card with points. Is there anyway to pay my mortgages with it to earn rewards?
No. Your mortgage company would then have to pay the credit card fees that vendors take when they let you charge. Even if they did, they'd charge those fees to you and that's not worth some credit card points.





Charging to a card for points is only worthwhile if you are paying your bill off every single month, in full. Otherwise, you should stop using your credit card and get them paid off. Get on a written budget that accounts for everything you earn, and live within that budget.

Freezing the rates on adjustable rate mortgages is like which of the following?

A: Casinos giving back all the money that people lost gambling.





B: Oil companies giving back the money that people with 15 MPG SUVs spent on gas.





C: Cruise lines giving back all the money people spent on cruises because the passengers didn't meet the man/woman of their dreams on board.





D: Stockbrokers giving customers back the money they invested in stocks that didn't pan out.





E: All of the aboveFreezing the rates on adjustable rate mortgages is like which of the following?
In my opinion the people who took out loans they could not afford should loose there homes. Any creditor who borrowed money to someone that they shouldn't have has to deal with those consequences. It may not be nice for the people involved or the creditor but it is a legal and binding contract. If the mortgage company wishes to do this on its own then it can, but the government should not intervene on a contract, in fact I鈥檓 not even sure it is legal for them to do so.Freezing the rates on adjustable rate mortgages is like which of the following?
F none. The freezing of rates will allow some borrowers to keep paying their mortgages and not leave lenders with propertys they don't want. That is what this will do. Keeping people in their homes and paying taxes is much preferred to an empty house that brings the lender and government nothing.
It's just delaying the inevitable. Unfortunately most of these laons will still be defaulted on, but it seems like they won't be defaulted on for another few years.
I understand that you feel that people are being bailed out for being stupid and taking a risk that ended up going bad. However, you have to understand that this isn't something that the government or anyone else is forcing the lenders to do. To the contrary, the lenders and doing this voluntarily because they understand that it is actually in their best interest to do so. In all of the choices to your multiple choice question, someone was giving people back their money and not benefiting from it. In the long run, the lenders understand that it is in their best interest to have these people remain in their homes and make payments rather than have a bunch of residential property that they don't want.

Can someone clairify about reverse mortgages?

If someones parent has a reverse mortgage on their home. If


and when the parent passes on. Will the percentage that the


parent had for repayment of a loan extend to the survivor, or


will the bank re-do the contract to reflect the new owner of the


home?Can someone clairify about reverse mortgages?
The loan has to be re-paid when the last borrower on the reverse mortgage vacates the house. The heir then has two options - refinance the home into a new mortgage or sell the home to repay the reverse mortgage. The remaining equity (after the loan is paid off) goes to the heir.Can someone clairify about reverse mortgages?
If both your parents are alive when the reverse mortgage was signed, it will discuss the arrangements when the first parent passes on, probably not much happens at that point. But when the surviving parent passes on, the bank will expect a full payoff based on the terms of the contract they had with your parents. If the reverse mortgage only covered a portion of the value of the home, and your parents leave their remaining equity in the home to you, you would have to pay off the reverse mortgage to keep the house. you can do that with a new regular mortgage assuming you qualify for one. If not, the property will be sold to pay off the reverse mortgage.
The bank will want their money back.





The bank will expect the house to be sold. The new owner (which can be an heir) would have to come up with their own financing to buy the house.





Many heirs get the idea that they own the house when they don't. The estate can't give them clear title to the house until all debts have been paid.

cosmetics

the bees

If a person has two mortgages for different properties, but only can afford one, wich one will it be?

One house is 2 years old (rental) the other is 5 months old (Primary). The payments are basically the same. Their's no equaty in neither of them because the housing market went down. If I sell one, the value is less than what I owed the mortage company. What is the best thing to do: Pre-Foreclose, Foreclose or Deed-in-Lieu?If a person has two mortgages for different properties, but only can afford one, wich one will it be?
either way, this will explain. http://www.washingtonpost.com/wp-dyn/con鈥?/a>

What do you think about mortgages like the one account? and what are the draw backs?

is the one account as good as it sounds really?What do you think about mortgages like the one account? and what are the draw backs?
The ';one'; account is basically an offset mortgage account. It is probably the most well known, but it is not the only one available. It is still essential to check out the rates that they are offering to you to make sure that you get the best rate. The premise is that you can offset your savings against your mortgage and save on the interest that you pay on your mortgage, this helps you to pay off your mortgage quicker, although it only really works if you have savings, or believe that you will be able to save money, and it is also beneficial if you are a higher rate tax payer.What do you think about mortgages like the one account? and what are the draw backs?
One account is good if you have loads of savings that you can leave in an account for a long time to offset against your mortgage, but if you are planning on useing the money it wouldn't be a good idea as it wouldn't work out any better for you!!!
One account mortgages are good if you are sensible with your money. All monies held in the account goes against the capital of the mortgage thereby reducing the amount of interest you pay. The problem with these account they normally come with a cheque book and many people end up owing more than they did in the first place because of the flexible reserve.
What is the ';one account';. Can you tell us where you saw this program? thanks


help@choicefinance.net

Should Obama Encourage women to find decent men to marry since single moms are having a hard time w/ mortgages?

That's what my wife did and the wives of all of my friends. We put 20% down on our houses (by working hard and saving).





Or should Obama just have taxpayers pay for the houses of single moms?Should Obama Encourage women to find decent men to marry since single moms are having a hard time w/ mortgages?
In the negrohouse with obama is the best, there you get white mommas/bitches for free.Should Obama Encourage women to find decent men to marry since single moms are having a hard time w/ mortgages?
men are extremely foul, and it makes me shamed to be a white male knowing that men are out there wearing my skin but saying big ';Words'; just to be mean, with pitiful, sh***y looks on your mugs instead of telling ';the other side'; how you feel, like a Man does, and working it out. we all need to do it

Report Abuse

How exactly would Mr. Obama do that? How is he going to identify them for the women? If these single moms you are talking about could do it, then they'd have married decent men in the first place.





Here's an alternative - let's expand paternity tests and increase the punishment for failure to provide child support - then those dead-beat dads can either keep it in their pants, support their children, or go to jail. That might cut down on the number of single moms AND let those that are left have an easier time with mortgages.
absolutely! his feminists friends would throw a fit though.





i also believe we should cut-off all public assistance to single mothers unless they agree to have a birth control implant placed in them.





i myself am in the process of saving up a 20% (or more) down payment on a home. living in a cheap apartment until then. i can't tell you how much it steams my clams to hear politicians talk about bailing out irresponsible borrowers. these people took advantage, took unnecessary risks and now the opportunities they were given will not be available to new first time home buyers. we responsible people get to pay for their new sweetheart deals so it's like they're double screwing us! the government wants to reward the irresponsible (or just plain stupid) at the expense of those who haven't done anything wrong at all!





it's infuriating, really!
No, that is NOT the president's job. Women who marry men who aren't decent deserve them, just as those kind of men deserve wives that would make such a decision. Most people get married so they're all going to get matched up anyways.
why would men want to be decent after women won their rights to be sluts...





Hey, men could just pick up any sluts from the bar and don't even have to know their names
As far as encouraging marriage, yes, just as long as you would agree that finding decent men to marry is easier said than done and there will always be some single moms who will need assistance.
I think he should have tax breaks for single moms. But I don't think all decent men want to date single moms. Some say they have too much baggage.
hell, 70 percent of prisons are filled with kids of single moms. I think we all need protection from kids of a single mom who act out with no dads.
Yes.


You are Supporting the Welfare Obama Voters.





And me, too.
HE SHOULD ENCOURAGE RESPONSIBILITY BUT THAT WOULD GO AGAINST LIBERAL DOCTRINE.
Or, he should find all sociopaths and tax them at a rate of 90%.
I think he should enforce both. ^_^
none of his business.

What happen's to home mortgages during a depression ? who collects, who evicts ?

I'm guessing the government takes over, but do they make millions and millions of people homeless when they call their loans and there is no way to repay ? I'm just imagining empty homes and people living in the streets, would it be less dramatic then that?


What happen's to home mortgages during a depression ? who collects, who evicts ?
In my opinion it won't be that dramatic.





The government doesn't usually take over mortgages. This current crisis is just that, a huge, unprecedented crisis and the government's bailout plan includes buying up bad loans.





When homeowners don't pay their mortgages, eventually the lender will foreclose on and evict them, if it comes to that. It does not happen fast. The homeowners get months to try to catch up on their payments and/or work something out with the lenders. The banks don't *want* to foreclose and then have property on their hands that they have to sell at a loss.





If the homeowners can't work something out they will have to move, but hopefully not to the streets! I guess this could happen but I think the percentage of people who end up homeless after a foreclosure is extremely low. More likely they find a place to rent or maybe move in with relatives.





Whoever ends up holding the loan tries to collect, but probably will end up writing off at least part of the debt.What happen's to home mortgages during a depression ? who collects, who evicts ?
The government is taking over the banks, the sheriff does the evicting.





It will not be ';millions of people';, and those ';millions of people'; dafaulted on loans, they lost their homes by refusing to repay the money they already spent. It is not something that happens to them, they made the choice themselves.

Is the sub prime lending crises due to banks trying to unload mortgages/bussiness loans of illegal alians?

What are the major ';low'; lending standards that has caused the ';sub prime'; mortgages crises?Is the sub prime lending crises due to banks trying to unload mortgages/bussiness loans of illegal alians?
It mainly dealt with subprime mortgages (people with bad credit given terrible mortgages with bad terms) and other adjustable rate mortgages. These loans were made to many different people, not illegal aliens. These mortgages did not have fixed interest rates. When you have an ARM (Adjustable Rate Mortgage) your payment goes up after the teaser rate period ends. Needless to say, many people did not understand their mortgages when they signed up for them and when their payments went up, they were unable to make them which lead to foreclosures.





I directly work with corporate finance and what are called asset backed securities and mortgage backed securities. These are loans that are grouped together and ';securitized'; and then sold off as fixed income investments. As people defaulted on their mortgages, prices on these securities plummetted which has had a profound impact on the economy.





The lesson to learn, you need to deal with lenders and financial advisors who have the heart of a teacher and will take the time to help you understand. Also, we need to educate ourselves so that we can make decisions on our own that we can trust.





Hope this helps!Is the sub prime lending crises due to banks trying to unload mortgages/bussiness loans of illegal alians?
No. The subprime crisis has nothing to do with illegal aliens.





The crisis was caused by mortgage companies giving loans to people with bad credit. People with bad credit are less interest rate sensitive meaning that the loans can be very very profitable......if they are paid. Unfortunately, the mortgage companies found something out the hard way. People with bad credit often default on their obligations.





Also, people tend to be very short term thinkers and want show off the big home to the friends and family. So they buy using a mortgage that gives them the lowest monthly payment (interest only or adjustable rate mortgages). A few years go buy and their rate adjusts and all of a sudden they can no longer afford their home.
No, its due to lenders not adequately screening borrowers' income and credit history and borrowers too ignorant to avoid getting in over their heads. Then these loans were repackaged and resold as ';investment grade'; bonds.

How do you buy delinquent mortgages ?

I am not asking about how to buy real estate in foreclosure . I am asking as to whether there is a way to invest on buying the delinquent


mortgages . Thank youHow do you buy delinquent mortgages ?
Buy shares in Citi or Bank or America?How do you buy delinquent mortgages ?
Sure. There are plenty of ways.





You can't buy them from banks (at least not yet), but you can buy them from individuals. There are plenty of people who've taken back financing, and the buyer is defaulting. There are plenty of other people who took back financing, sold the note to a third party, and the buyer is defaulting.





Among the ways to find those: classified ads in newspapers (look under the ';Notes'; section of the classifieds) and Craigslist. There are also a number of web sites that specialize in buying and selling notes. Most are performing, but some aren't. One site is eNoteWorld. Go to http://www.enoteworld.com/cgi-bin/Auctio鈥?/a>





You can advertise in the papers and on Craigslist, too, to find nonperforming mortgages.





Hope that helps.
If you were the U. S. treasury, you would be buying all the subprime loans now in foreclosure to save the idiots who were part of the scams.


You might try advertising to attract individuals who are in foreclosure with a small town bank as they may sell you the mortgage as it is probably in their portfolio and not sold to the secondary market. Just a thought. Guess my question is why you would want to buy a delinquent mortgage and assume the risks and headaches unless you want to foreclosure on the borrower and own a troubled piece of real estate yourself.
You would have to buy the note from a bank, but they wouldn't sell to an individual.

cosmetics

the bees

Where online can I find a list showing which states uses mortgages and which states uses trust deeds?

I would like to know this for all U.S. states. Anyone know any web sites where I can get this information?Where online can I find a list showing which states uses mortgages and which states uses trust deeds?
Let me be the first to tell you there is no such map because all states allow for both mortgages and trust deeds. The two are not synonymous. One denotes a certain type of loan and the other denotes a certain type of ownership in accordance with a mortgage.

How do you keep track of interest rates for adjustable rate mortgages?

Any good websites?How do you keep track of interest rates for adjustable rate mortgages?
Depends what rate is pegged to and how frequently it adjusts. Your lender should send you notices of each rate change.





Do yourself a favor: Rebuild your credit, pay everything on time for 6 months, then refinance to a fixed rate loan while rates are so affordable.

Is there still 100% mortgages financing available for a new purchase?

I am looking to purchase a property for about $25, 000 less than value, I do not have enough for a down payment. I have good credit.Is there still 100% mortgages financing available for a new purchase?
yes, with good credit, if you need the source email meIs there still 100% mortgages financing available for a new purchase?
Check out www.naca.com. It's NO Down Payment, NO Closing Cost, No Prefect Credit required.


We purchased our house with NACA and had great credit. We did what to have to pay the down payment and PMI for our house.


The interest rate was like 4.375% Friday.
You DO NOT need a 700 credit score, you need a 620. Please see a licensed broker.





You can get details here: http://WeFixRates.Com
There is 100% financing available via USDA. It is a program that has qualifications, as to where the property is located, and some other things that your lender that approves them, will be able to share with you. Perhaps the best feature, like VA financing, there is no mortgage insurance.
Usually in the larger cities, the local government may have federal funds through their CDBG (Community Development Block Grant) that assists first time homebuyers with downpayment assistance in certain areas. There are also state provided assistance programs possible also through your State's Department of Commerce.
Only if your credit score is 700 and above....if its lower you than that you probably get a 80/20 at some sub prime lending company's if they still exist....

What different types of mortgages are there? I dont want to be scammed?

I dont want to get scammed into taking a mortgage I dont need. Can a mortgage expert enlighten me on mortgages. i would also like to hear the laymans views as well. How many types are out there; Pros and cons. I just heard of an inerest only but the only sense I can make from it is that there is no principal on the loan. Does that mean I would have to take another mortgage on the principal. What a balloon mortgage? Sounds like something that would blow up if I'm not careful. Once I decide on the mortgage that would best suite me do I then look for a bank. I dont want 5 different bank looking into my credit report. Can I run my own and hand each one a copy? What are the pros and con of using a bank instead of a mortgage boker and vice versa.What different types of mortgages are there? I dont want to be scammed?
Ok first off:





What is your main reason for wanting to refinance?





There are litereally hundreds of loan programs on the market today. Some are horrible for one person and the best for another.





Interest only loans are great if you want to keep your monthly obligation to your mortgage payment at a minimum. However if you simply make the required monthly payment nothing goes to principle. But you can always make additional payment to the principle.





You can run a copy of your credit at www.annualcreditreport.com this is the website the FTC recommends to use for a free credit report. However when you do go to apply, the lending institution will still need to run your credit.





A balloon mortgage is a loan amortized over say 30 years but the balanced is owed say in 15 years. So if you refinance before the 15 years is up you would not need to pay off the loan on the 15 year. These are usually for 2nd mortgages or people with bad credit.





Across the nation, it has been proven that Mortgage Brokers have an average interest rate %26amp; fees that are less then Banks (because they are more competitive. So I would recommend using a licensed agent at a broker's office. Make sure the loan agent/officer is licensed!





If you live in California, I am a licensed Loan Officer and I would be happy to show you your options.





The best thing for any loan officer to do for you is find out what your future plans are for the property as well as future financial goals, then customize a loan program to meet those goals %26amp; needs.What different types of mortgages are there? I dont want to be scammed?
Lol I know what you mean, it's a jungle out there, you should hear the nightmares I hear in court when I go to testify. But in any event here are links that you really need to research even though some are not directly related to mortgages they will have an impact on the amounts of the mortgages and the methods used to provide such mortgages:


Fair Housing brochure: http://www.hud.gov/offices/fheo/FHLaws/F鈥?/a>


The HUD-1 closing costs form explained: http://www.alta.org/consumer/hud1.cfm


HUD Private Mortgage Insurance (PMI) Information: http://www.hud.gov/offices/hsg/sfh/res/r鈥?/a>


HUD Borrower rights and responsibilities of Mortgage Servicer: http://www.hud.gov/offices/hsg/sfh/res/r鈥?/a>


HUD Looking up mortgage limits for FHA mortgage loans: https://entp.hud.gov/idapp/html/hicostlo鈥?/a>


HUD Revised Borrower鈥檚 Closing costs guidelines: http://www.hudclips.org/sub_nonhud/cgi/n鈥?/a>


FHA Federal Housing Administration loan programs: http://www.fha.com/


FHA Rural Housing loan programs: http://www.rurdev.usda.gov/rhs/common/in鈥?/a>


US Government Housing assistance grants all areas:


http://12.46.245.173/pls/portal30/catalo鈥?/a>


US Government Grants page: http://www.grants.gov/


US Federal Domestic Assistance catalog for all Federal Programs available to State %26amp; Local Governments %26amp; the Public


http://12.46.245.173/cfda/cfda.html


All government Benefit Programs http://www.govbenefits.gov/govbenefits_e鈥?/a>


Department of Veteran Affairs 鈥?Home buying programs for Veterans:


http://www.homeloans.va.gov/veteran.htm


Federal Reserve, pamphlet on acquiring the best mortgage: http://www.federalreserve.gov/pubs/mortg鈥?/a>


US GOVERNMENT CONSUMER TIPS ON HOMES: http://www.consumer.gov/yourhome.htm


Real Estate Settlement Procedures Act (RESPA) [about closing costs %26amp; settlement procedures]: http://www.hud.gov/offices/hsg/sfh/res/r鈥?/a>


Mortgage Calculators 鈥?Includes finding if you will qualify for a mortgage:


http://www.mortgage-x.com/calculators/Pr鈥?/a>


Biweekly mortgage calculator: http://mortgage-x.com/calculators/biweek鈥?/a>


Closing costs comparisons by States: http://www.bankrate.com/brm/news/mortgag鈥?/a>


Calculator to compute an estimate of the total cost of closing: http://www.myfico.com/LoanCenter/Mortgag鈥?/a>


Predatory Lending information from ABA: http://www.aba.com/Consumer+Connection/C鈥?/a>


There are many more links available but these should give you a pretty good idea


Buena Suerte
Adjustable Rate Mtgs., these usually have a low intro. rate, then they adjust to the mkt. Interest Only, which is where you only pay the interest, the mortgage comes due later, for example a balloon, you pay interest only for 10 years, then you pay the balance, pay off the loan or go into foreclosure. These listed are the reason many people now and in the next few years will be going into foreclosure. Your best bet is a standard mtg. if you have 20% to put down you can avoid paying PMI, if not you can do two loans, one for 80% and one for 20% and avoid PMI, although the one for 20% may be an interest only. Go to several places if they all pull your credit report in one month it shouldn't have an adverse effect on your credit score.
Every mortgage program has an applicable time and borrower for it. To determine the right program a serires of questions will need to be answered many of which are already addressed here.





Here is some additional info. Hope this helps.
Once you are educated and feel comfortable speaking with a broker call me up, I will do good by you and hope to get your referral once the job is done right.





Manolo Borja, Senior Account Executive





Aapex Mortgage Corp. and Modern Tech Industries, Inc.





366 North Broadway, Suite 206





Jericho, NY 11753





(516) 345-1136 Phone





(516) 706-7700 Fax





Email: nolo430@aol.com





Websites: www.aapex.com





www.18776loanyes.com
Why do you need the money?


How do you want to pay it back?


What kind of property do you plan to use as collateral?


No inteligent lender would allow you to provide a credit report by hand (it could be fake).
Lending Tree gives your info as a ';lead'; to other lenders who have paid to be on Lending Tree's network. Get ready for a lot of contact from them if you give your info! To stay in control, I would contact the lenders yourself instead. Try Eloan, Ditech, and Choice Finance.
There are so many different programs out there and no none here will be able to tell you what's best without knowing your financial story inside and out. So instead of that, I'd recommend you interview several different mortgage brokers. Stick with larger companies that are more likely to have a broad variety of options for you. Ask the brokers to explain the different offerings to you in generic terms then to get a little more specific about what they recommend for you. A good, honest mortgage broker will do this without running your credit. You'll have to give them a basic idea of your financial status, and if you have your FICO score that will help. Then together you pick the package that works best for you, and make a formal application. Your credit should only be run ONCE, only when you've agreed to a loan package.





Any mortgage broker that won't take the time to explain the pro's and con's of their various products is not worth doing business with. Move along to the next company. There are a TON of mortgage companies and brokers out there. When you enter into a contract with one, you've basically hired them as your employee. Make sure they really want the job before you hire them.
There are an almost infinite number of loan programs available since each borrower has specific needs and lenders want to meet all of those needs.





You need an expert to guide you through the process. This is way too complex to go into it with limited knowledge and try to figure it out yourself.





With a 20+ year history as a mortgage lender, the following are the steps I reccomend:





Ask friends, co-workers and relatives for referrals to mortgage lenders. There are basically three types; mortgage bankers, mortgage brokers, and mortgage professionals.





Mortgage bankers work for a direct lender. The funds being advanced for the loan are the bank's own funds and the loans are either securitized with a federal mortgage security entity or held in the bank's portfolio. Mortgage banks may be slightly more conservative, seeking only the most highly qualified borrowers, and may have a limited number of loan programs but may also have access to some specialized or portfolio prrograms that brokers cannot access.





Mortgage brokers are independent and close their loans through a variety of wholesale lenders. They may advertise lower rates but, being a third party, their fees may be higher.





Mortgage professionals have access to both loans funded by their own bank and the ability to broker as necessary. Since, at the core, they are direct lenders, their fee structure may be the most competetive and their interest rates also.





Speak to all of your referrals on the phone and narrow your choices to 3. Remember, their object is to get you make application at first contact. Resist that urge until you have done your homework.





Your ideal choice is someone who has great references, very strong communication skills, and with whom you connect. Go with your gut.





The right loan officer will take the time to listen to your needs and goals and then explain all of your options to you so that you may make the best choice. Remember, it is your loan, your choice.





Lenders must use credit reports that they have ordered, they cannot use one you supply.





There are some things you will want to consider in order to help your loan officer limit your choices to only those loans which will suit your needs; are you a first time buyer, how long to you think you will stay in this house, are you anticipating income increases or decreases in the foreeable future, what would be a comfortable monthly payment amount for you including property taxes and fire insurance.





The right loan officer will pre-approve you free of charge so that you can present a letter confirming your pre-approved status to your Realtor to be given to the seller along with your offer.





Good luck
Try Ditech we got our loan through them and it was a pleasant experience.
You do not want to be scammed, Heck I never see that on yahoo answer, Realtor and loan officer seem to be so trusted and honest.





You are doing the right thing and that is studying what is out there. Good job there for becoming informed. Since you do not want to be scammed check out this web site also it tell how the bubble was made.


http://www.breakingbubble.com/index.htm





Good Luck, and keep learning.

Why are fixed rate mortgages always for a limited period of time?

is this true??





for example back in 2001 -2003 when they were offering the ability to switch to a low rate fix mortgage...were all of these for a limited period of time or not?





why and how so??





Thanks for your answers!Why are fixed rate mortgages always for a limited period of time?
The rates change over time. You can always switch to a fix rate mortgage but how low depends on what banks are offering at the time.Why are fixed rate mortgages always for a limited period of time?
No, fixed rates never change. Only adjustable rates change, usually after 2 years.





Most fixed rates in the US are 30 years, but 15 is fairly common as well.
You are confusing an ARM fixed for 5 years which is not a fixed rate loan and an actual fixed rate loan which is for 15, 20 or 30 years.

Who has the best mortgages for first time home buyer in St. Louis Missouri?

I am not a rich person but I need a home for my wife and two girls. The price range is between 100,000 and 120,000 if that is needed. I have zero money to put down, but I might be able to dig up about a thousand dollars or so. Any help would me much appriciated. Thanks Alot!Who has the best mortgages for first time home buyer in St. Louis Missouri?
if you have a 620 you can look at mycommunity....it's zero down....otherwise you can use the FHA with 2.25% down payment.





make sure to get the seller to pay for the closing costs!!!








*710 is good but it will not change your rate on the government programsWho has the best mortgages for first time home buyer in St. Louis Missouri?
Go to ditech.com they have no junk fees
Check with the Missouri Housing Development Commission to see if you qualify for any of their first time home buyer programs.





Check out the site below to learn more. Good luck!

baby sunscreen

the bees

How it affect credit score,borrowing amount for future mortgages if i'l be a cosigner for my brother mortgage?

my brother ask my husband to be his cosigner for a mortgage, I don't work (sitting with 1 old baby), we'r planning to buy a house in about a 1 year. how this cosigne thing will affect our credit score and getting a mortgage of our own?How it affect credit score,borrowing amount for future mortgages if i'l be a cosigner for my brother mortgage?
It will effect your score if your brother is ever late with a payment.





It will effect the amount you can borrow regardless, as it will drive your income/debt ratio way up.





Unless you make a ton of money I would not do this, it could very well prevent you from owning your own home.How it affect credit score,borrowing amount for future mortgages if i'l be a cosigner for my brother mortgage?
This is not a good situation.





If your husband actually co-signed on the loan, then he is technically responsible for the full monthly payment on that loan should your brother default. That mortgage will be counted in your over all debt and will reduce the amount of a mortgage you qualify for. It doesn't matter that your brother is paying it every month. In the eyes of the lender, both of them are legally responsible for the full payment every month.








Additionally, if your brother is the one making the payments and he doesn't pay on time, that will show up on your husband's credit as well and it will have a very negative impact on your credit score AND on your ability to qualify for a mortgage.





The best thing you can do is to have your brother refinance and take your husband off the loan. And NEVER do something like that again.
Co-signing for a loan is about the worst idea ever.Especially with a family member.It very rarely works out well and your credit rating will definitely be affected.I'd advise you to read a book that I read recently written by Dave Ramsey called The Total Money Makeover.The fact that he needs someone to co-sign should be a flashing neon sign right there that there must be something wrong with his own credit rating if he needs someone to sign for him.We always want to help family but when it comes to something like this I think you should think about it very carefully and really nderstand the affect it will have on you.Read the book....you'll know what I mean.Good luck!





Rita


healthyincomefreedom.com
This is a bad idea under the best of circumtances. I can see no good reason for your husband to do this.





If for any reason your brother can not make his monthly mortgage payment the lender will be looking for your husband to pay it.





If for some reason your brother does not make the monthly payment it will be reflected on your husband's credit report.





Your brother might have all good intentions to make the monthly mortgage payments, but if he get ill it would not make a difference to the lender. They would still add a one month late to your husbands credit report.





With you and your husband wanting to purchase a house in the very near future and one year is in the near future this will cause problems for you.





I am not concerned with debt ratios because if you can prove with cancelled checks from your brother's checkcing accocunt that he is making the monthly mortgage for a full year or more that will not be a problem.





My over all concern is that for some reason your brother might not make a payment one month or on time. Say your brother decide that something else is more important for him to purchase. He saves the money to purchase this item by not making his monthly mortgatge he will be able to buy this item.





This would be a bad decision on your brothers part, but the late payment would be reflected on your husband's credit report.





I hope this has been of some use to you, good luck.





';FIGHT ON';
please do not do this because not only can it affect your credit if the payment is ever late but you will not get qualified for a much n your own home and plus....a home is the BIGGEST debt you will ever take on. 30 - 40 years is no joke. If someone cannot qualify by themselves then they are not ready to buy. Advise them you do not feel comfortable and have them continue renting and fixing their own credit. They can also save for a down payment that way as well.
Not only will effect your credit score. But it will also impact the amount you can barrow on the home you want. As it falls under obligations.
Do NOT do this!!!

Why do people think the government should help them with their mortgages?

I am curious.


I don't doubt that this problem is impacting our econmy, but if I'm living by a shoestring to keep my house, why is someone else feeling entitled to being helped to keep theirs?


Can't people realize they messed up and do what they must in order to move on and survive -even if that means losing their home?Why do people think the government should help them with their mortgages?
It's a lot harder to blame yourself for bad decisions than to think of yourself as a victim of forces beyond your control.Why do people think the government should help them with their mortgages?
Hi


Our monetary system is based on debt. Money is created only out of debt and is not backed by anything but debt itself. Money is constantly devaluing and has no substance.


It鈥檚 actually quite worthless paper, controlled and ruthlessly multiplied by he central banks, making sure the world population are enslaved by it and providing billions for the bankers and debts for the people.


http://www.justiceplus.org/bankers.htm





Now I鈥檓 not wishing to create a revolution here, but these are things the people should know about, to help themselves.


And wouldn't you like to know how you can profit and protect yourself?





If the government are helping people keep their homes, then that's a first!!!





If you want to know how you can keep yours and also the following -





Members of the private members club I belong to are given the tools and the knowledge to:





鈥? Create large incomes in the shortest possible time


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鈥? Gain an A1 credit rating within about 3-4 months


鈥? Learn how to avoid but not evade paying taxes


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If you want to know how this changed my life then email me or visit my site www.wealth4freedom.co.uk





Hope this more than answers your gripes!!





Regards


Matt
Because this is the age of ';entitlement';. Everyone thinks they are owed something and not reponsible for their own decisions.
The government is NOT really bailing out the homeowner, since it is the BANK who is losing big time.





The average loss on a foreclosure for the bank is $50,000.





The Federal Reserve (Central Bank) is bailing out their buddies (money center banks)





They would NEVER say this in public.





They would spin it to appear they are bailing out homeowners who made bad decisions.





They are really bailing out the banks who made bad loans.
I agree. I do think one solution the government could offer is a tax free and penalty free withdrawal from your 401k or retirement plan with an option to pay it back. This could help out without being a so called bail out. But you are right most people did this to themselves. They wanted to live above their means.
There are two types of people in this world. There are those that can perform a true self-evaluation and those that can't.





The ones that can perform a self-evaluation realize when they have done something wrong. they will look for ways to help rectify the situation they placed themselves in. They will realize that it was them that caused the problem. After the problem is done they will learn from it and move forward and will most likely not make the same mistake twice.





The people that can't self-evaluate will always look to someone else to have caused their problem. Whatever problem they are having now was caused because of an external influence not by something they did.





These people are the ones who are now looking to get bailed out of the mess they are in because it was the mortgage broker/bank/etc that caused the problem.





They do not realize that they went through the process, they signed the papers and they agreed to the loan. They feel it's not their fault because things weren't explained to them. They do not realize that they got into this situation because they did not go out and learn about what they were signing up for.





This entitlement that many people feel now falls back to the only source they can think of to help them, the government. Since they feel they were ripped off they are looking to the government to help them. The government is too scared of having a bunch of the citizens mad at them so they do what they can. this further perpetuates the entitlement philosophy of the people.