For the week ending Wednesday Jan 8 the 30-year fixed averaged 5.01% with an average 0.6% fee, down from last week when it averaged 5.10%. Last year at this time, the 30-year fixed averaged 5.87%. - "Interest rates for 30-year fixed-rate mortgages fell for the tenth week to a fourth consecutive record low due in part to the Federal Reserve's recent purchases of mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae," said Frank Nothaft, Freddie Mac vice president and chief economist.
Plunging mortgage rates have spawned a frenzy of refinancing, borrowers with larger, so-called jumbo loans are still seeing interest rates in the 7%. Read more (I can overcome this. Contact me)
In a move that clearly caught much of the financial and mortgage markets, Citigroup, Inc agreed with key legislators on a plan that would allow bankruptcy judges to modify the terms of mortgages during debt restructuring. The move is a surprising break from the financial industry’s long-standing and strong stance against allowing so-called mortgage debt cram-downs. Read more
Indexes of the riskiest mortgage bonds slumped after one of the largest U.S. banks said it will support legislation that would give bankruptcy judges the right to alter mortgage contracts. Read more
Distressed residential lending program
Financing is available to the opportunistic investor for both acquisitions and post-acquisition recapitalizations. The following are the program highlights:
- Small to mid-size residential portfolios
- Target discounts should be in the 60% range from the note amount or high value
- Leverage up to 70% of total project cost
- Typical property pricing in the $150K to $250K range and could be rented for approximately $1,500/month
- Detached housing and condo properties
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We are going to have to have a different mindset in the coming months to years as we are negotiating socialistic points rather than capitalistic points; and there is very little that can be done to overcome this. Thus, the question arises is how does the government try to help with creating the minimal amount of damage, as damage will be created. The discussion of allowing the lenders to allow capitalism in the picture will be out of the window for the near future. So we all will have to find positives that offset the negatives in massive government intervention. Super post.....
We all better refi before the administration and rules start to change more and more to benefit those who have been irresponsible with their money and will punish those that have been responsible.
It is amazing how quickly this is all changing. I hate to see what some of this will morph into.. in a few months.
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