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Experts say that the Fed interest rate cuts will do little to help existing mortgages

Listening to all the news about the recent Federal Reserve Rate Cuts (by half a point) you get the usual pros and cons.

The con side is still warning that despite the generous interest rate cuts,

Fixed mortgage rates would not be effected
APR rates would slightly go down
Same with the credit card rates, only slightly effected

and the list goes on.

The above list would not even help the current situation of home owners faced with a very high monthly mortgage payments.

I feel that the mortgage companies need to step up and work with their current customers to restructure the loans to something that their clients can afford. this would greatly increase the confidence level that can bring about the stability that everyone is looking for.

Posted by Richard Thewissen on 09/20/2007 10:08 AM

Comments (3)

3 Comments on Experts say that the Fed interest rate cuts will do little to help existing mortgages

SEP

2007

I may halp some in ARM loans, which are one of the big problem spots. But, you are right. The rate cut isn't going to significantly impact most people. But, it certainly won't hurt.

SEP

2007

Your suggestion that lenders try to help their own customers get out of the jamb that they are in is a good one. Unfortunately, the lenders that caused the most problems are not in business any more. They made their money, went belly up when the market changed and closed up shop.

NOV

2007

Richard-

I'm curious as to your thoughts on what the (surviving) banks could do to help their custermers... withough going bottom-up themselves.

Unfortunately, many of the homes purchased when the market was hot were not actually affordable to the buyers. Now those buyers are having to make tough decisions as to what they will do. It's a crappy situation to have to tell a client that they will have to bring money to the closing (or go through the process of a short sale)... and that is also the time when our professionalism can truly shine.

You may not always tell your clients what they want to hear... I make sure I tell my clients what they NEED to hear.

~Emily

The San Diego Real Estate Expert

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