President Bush Announces Industry Agreement
to Freeze Sub-Prime Mortgage Rates
Following weeks of talks with Treasury Department officials, mortgage lenders and Wall Street firms, President Bush announced today an agreement to freeze interest rates for up to five years for some borrowers with sub-prime loans.
What you need to know about the agreement:
- The agreement will allow distressed borrowers who are current on their sub-prime loan payments to keep their low introductory rates
- The rate freeze will apply to loans taken out between January 1, 2005, and July 30, 2007, and scheduled to rise in 2008 and 2009
- The rate freeze will exclude the following groups:
- Borrowers who are delinquent on payments
- Borrowers whose introductory rates expire before January 1, 2008
- Borrowers who mortgage companies determine have sufficient income to pay the higher rates
Billy Sorrentino
Homeowner Advisor
The Prime Financial Group Inc.
110 West Indiana Avenue, Suite 204
Deland, Florida 32720
(386) 852-7201 OFFICE
(407) 386-7504 EFAX
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