Treasury Secretary Timothy Geithner is in active negotiations with the biggest banks in the country to settle the foreclosure mess that has dragged down the entire country for the past 3 years. Other parts of the world were also impacted in the increasingly global economy, where foreign investors who bet on housing lost out big. Geithner and the banks know that there are a huge number of lawsuits in the pipeline awaiting the financial lenders, and a broad settlement is likely the best way to avoid them. Such a coordinated effort will require much time and skill, but a sweeping settlement and reform is the best way to quickly heal the housing market.
The ailing economy, high unemployment and massive foreclosure rates can largely be blamed on one thing – the failure to regulate bank mortgage activities and a lack of transparency in mortgage related investment products like CDO’s. Former FDIC chairman Bill Isaac believes regulators passed on a great opportunity to really reform the banking system and how banks are allowed to operate in relation to mortgages. As such, he sees another crisis as imminent as the conditions that led up to the worst economic situations since the Great Depression are all still in play.
Underwater mortgages, or mortgages where home values are less than the amount owed on the loan, are on the rise again across the U.S. While many people would like to sell their homes, some mortgage lenders are taking longer than necessary in the foreclosure process. Other homeowners are simply mailing in the keys and walking away. Underwater mortgages usually lead to foreclosure, which isn’t good for the economy or lenders. In fact, most lenders will have to write off the loss for the original amount the home sold for on their balance sheets, which hurts their profitability.
Mortgage rates have dropped for a 3rd consecutive week as inflation and double dip fears affect the housing market. Already 5 years have passed since the housing peak in 2006, and yet housing is still in trouble. In fact, Yale economist and founder of the Case-Schiller Index noted recently that there was a “substantial risk” of home prices dropping another 15-25%. That doesn’t sound all that positive for real estate purchases this year.
US Banking Rates will help you find the best mortgage rates for your needs. Knowing your credit score allows us to find the best home loan rates available for you.
Click the score to the right that best matches your current credit report score. If you do not know your current score then choose “I Don’t Know” this will allow you to check your Credit Report and Score for free and then come back and continue. You can also estimate your credit score if you prefer.
US Banking Rates works with the top lenders and banks who are most interested in working with you based on your credit score, your financial situation and your overall needs.
Top Rated Home Lenders will contact you directly to help you find the best rates for you.
As compared to the past 30 years, current mortgage rates are at historic lows, but always talk with multiple home loan lenders to learn what interest rates are available to you. Mortgage Interest rates change on a daily basis and working with the best lenders will help you know when to take advantage of the lowest rates available for you.
One of the most confusing aspects of Mortgage rates is understanding the difference between an advertised Interest Rate and the APR, or annual percentage rate. The APR is the actual interest rate that you will pay on a mortgage loan including fees. This makes it easier to compare rates that do not have fees with rates that may include fees or points. The APR was intended to make this comparison simpler, but instead, it often adds to the confusion. Just keep in mind, that the Annual Percentage Rate is likely to be different than the advertised mortgage rate because of the additional fees.