Many Home Buyers Can't Afford Mortgages

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Many Home Buyers Can't Afford Mortgages
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I could NOT understand anything at all because
of no captions here. I even click on to turn on
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This is the lack of accommodations
at the AOL News.

Perhaps anyone who can hear and tell me about
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This is the reason why
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TFWFalcon said:
You think Federal rate hike by 9%?. Figure it out, He is only 1-1/2 years before he leave from the office.
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Watch n see.Because he appointed that moron Ben Bernanke to the director of the Federal Reserve.Thats why i wanted the democrats fillabuster his nomination.I wanted STEVE FORBES the director of the Federal Reserve.Cause STEVE FORBES knows economics.He wouldnt raise intrest rates while gasolene is at $3 a gallon.If STEVE FORBES was the director of the Federal Reserve intrest rates would be just 5.75%.
 
Buckdodgers said:
This is the reason why
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Really? I don't know about Bush give a screw on us about house prices.

If got screwed up then I would move to Canada then no big deal, probably in Vancouver or so.
 
Damn... this media player don't work on mine...
 
Sorry, I couldn't view it. I got this msg:

"To protect your computer, Firefox prevented this site (us.video.aol.com) from installing software on your computer."
 
Many poor people and those with bad credit got Adjustable Rate Mortage (ARM) becuz the banks decided they "qualified" for it. Now with the interest rates going up, all those people with ARMs are being squeezed big time...Hope this doesn't bankrupt our economy cuz its a huge problem now.
 
Buckdodgers said:
Watch n see.Because he appointed that moron Ben Bernanke to the director of the Federal Reserve.Thats why i wanted the democrats fillabuster his nomination.I wanted STEVE FORBES the director of the Federal Reserve.Cause STEVE FORBES knows economics.He wouldnt raise intrest rates while gasolene is at $3 a gallon.If STEVE FORBES was the director of the Federal Reserve intrest rates would be just 5.75%.
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*Sigh* Buck...get a grip on reality. You really have no clue why gas prices are at $3 do you? It wouldn't matter who was President and which party he/she belonged to either. To keep this simple, it is a function of supply and demand. There is only so much oil to go around in the world especially since the Chinese are sucking up all excess supply to run their economy. We are very much at fault for not looking for alternatives to oil. With the price of oil at $3, we are finally seeing sensible movement in that direction. Believe me, nobody would do this if gas was $1.5

Interest rates don't directly affect the price of oil. In this case, Bernake is simply continuing the policies of Greenspan. Meaning, that if the economy is going strong, keep it reasonable by hiking the interest rates. Right now, they aren't planning to hike any more and probably will start reducing if things start looking shaky.

Get your facts straight...
 
Who would going fix the problem...
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Y said:
Many Home Buyers Can't Afford Mortgages
Media Player

I could NOT understand anything at all because
of no captions here. I even click on to turn on
the captions on the Preferences... Still no luck.
This is the lack of accommodations
at the AOL News.

Perhaps anyone who can hear and tell me about
this news ?
Click to expand...

I couldn't get that thing to show but I surmised it is discussing the problem either the interest rates has gone too high for many people to buy a house. Truth be told, historically the interest rates aren't that high compared to the 80's where it went as high as 17%.

It could also be about the fact that many recent mortgages have been ARMs combined with the rising interest rates and decrease in home values have crunched home buyers... I suspect this is really what it is talking about as that has been in the news recently.
 
sr171soars said:
I couldn't get that thing to show but I surmised it is discussing the problem either the interest rates has gone too high for many people to buy a house. Truth be told, historically the interest rates aren't that high compared to the 80's where it went as high as 17%.

It could also be about the fact that many recent mortgages have been ARMs combined with the rising interest rates and decrease in home values have crunched home buyers... I suspect this is really what it is talking about as that has been in the news recently.
Click to expand...

Yes, I remember in 80's hit highest was 18%. Plus mortgages bank suffer hurt by too many foreclosure force rate high. (who has payment with ARM high rate make hard to make payment.)
 
Yea, I read in the news couple months ago about these people who are not well educated about pros and cons on these arrays of mortgages. I was too smart for this and refused ARM, and other adjustable mortgage offers. Yea I had offers and I simply refused because I knew economic is so unpredictable and I do not want any risk and decided to grab that 2nd lowest fixed rate in history. I missed the lowest in history by only 5 weeks! If I had wait for another 5 weeks I would have had the dirty low interest rate in history. Even though the lowest ARM in history beats the fixed rate, over the time I believe it is gonna cost me dearly if I go for ARM. I feel sorry for these morons who just simply do what the mortgage officer suggest them and not doing an research to begin with.

As matter of fact that I am homeowner, I have one ultimate rule... These home equity loan is illegal and prohibitive to me! Meaning that I will NEVER going to apply or accept these offer with home equity loans! So, in other words if a homeowner have a mortgage with ARM and have home equity loan (usually they are adjustable) they are looking for real trouble in the end and the foreclosure is easily within reach.

Finally, I learn from a program that is offered by City. They warned me of "Interest only" mortgage These kind of mortgage is the worst one! Why? You could be tempted just to pay interest only on your mortgage, but suppose if the house value plummet, or that you can't sell and at the end of term, the full payment of the principle is EXPECTED, failure to pay in full before end of term, the foreclosure will be right there!

Believe it or not, my house was built in the same year that mortgage has the highest interest rate in history (18%). B-) I bet the first owner paid more than what I am paying at this time!

sr171soars said:
I couldn't get that thing to show but I surmised it is discussing the problem either the interest rates has gone too high for many people to buy a house. Truth be told, historically the interest rates aren't that high compared to the 80's where it went as high as 17%.

It could also be about the fact that many recent mortgages have been ARMs combined with the rising interest rates and decrease in home values have crunched home buyers... I suspect this is really what it is talking about as that has been in the news recently.
Click to expand...
 
TFWFalcon said:
Yes, I remember in 80's hit highest was 18%. Plus mortgages bank suffer hurt by too many foreclosure force rate high. (who has payment with ARM high rate make hard to make payment.)
Click to expand...

Actually, the banks won't get hurt too much by these "questionable" loans. They are not stupid and they have learned from the saving and loans scandel in the late 80's or early 90's. Basically, they have ways to package their portfolios to mitigate the risks and they will be fine. This is another way of saying they can sell these loans to others and there are willing buyers out there! Where there is high risk, there is great potential for great rewards.

It is us "Joe Q. Public" that won't be fine. We are the ones that pay for the risks involved! So, it behooves us to read the fine print and realize what we are signing. I would under no circumstances ever get a mortgage that they are packaging now were you didn't pay interest right away. I don't even like ARMs unless I had the money to pay it right off the bat if things go south (like rising interest rates).
 
sr171soars said:
Actually, the banks won't get hurt too much by these "questionable" loans. They are not stupid and they have learned from the saving and loans scandel in the late 80's or early 90's. Basically, they have ways to package their portfolios to mitigate the risks and they will be fine. This is another way of saying they can sell these loans to others and there are willing buyers out there! Where there is high risk, there is great potential for great rewards.

It is us "Joe Q. Public" that won't be fine. We are the ones that pay for the risks involved! So, it behooves us to read the fine print and realize what we are signing. I would under no circumstances ever get a mortgage that they are packaging now were you didn't pay interest right away. I don't even like ARMs unless I had the money to pay it right off the bat if things go south (like rising interest rates).
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I agree with you. I dont trust ARM rate. It was quick up or down unlike fixed rate.
 
sillycat said:
Many poor people and those with bad credit got Adjustable Rate Mortage (ARM) becuz the banks decided they "qualified" for it. Now with the interest rates going up, all those people with ARMs are being squeezed big time...Hope this doesn't bankrupt our economy cuz its a huge problem now.
Click to expand...

I hope my good credit remains for my future home. No co signer needed. They saw me always pay the payments. My car and trailer. I want new home on low interest mortgage but too late interest goes up a bit. Because war, depend on foriegn oil, gas price increases and many. I can wait another couple years. I learned smart mortgage from my old friend who pays 220 dollar a month on $130,000 2001 house I visited their nice place!
 
starrygaze said:
... I can wait another couple years. I learned smart mortgage from my old friend who pays 220 dollar a month on $130,000 2001 house I visited their nice place!
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Er...always check into the facts of the matter before committing yourself to any kind of mortgage. The mortgage above smells like one of those interest free mortgages (with some kind of balloon payments) that have been coming up with recently. I wouldn't touch that with a wooden pole. A traditional 30 yr fixed mortgage for $130,000 at say 6% would be ~ $779.42 a month. This just goes to show that things aren't all they appear to be...
 
sr171soars said:
Er...always check into the facts of the matter before committing yourself to any kind of mortgage. The mortgage above smells like one of those interest free mortgages (with some kind of balloon payments) that have been coming up with recently. I wouldn't touch that with a wooden pole. A traditional 30 yr fixed mortgage for $130,000 at say 6% would be ~ $779.42 a month. This just goes to show that things aren't all they appear to be...
Click to expand...

I know my old friend possibly paid first down before mortgage. I believe it would be 5%. Well I will contact my old friend hopefully.
 
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