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What you need to know about the Sub-prime mortgage rate freeze

By
Mortgage and Lending with Franklin Loan Center

12/7/2007 

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
Elaine Stewart
Elaine Stewart is the #1 Individual RE/MAX Agent for 13 years straight in the Coachella Valley. (760) 668-2399 - Palm Desert, CA
RE/MAX All-Pro
This is really going to help allot of homeowners, we recently had a loan adjust and our payment went up 700.00, it just snuck up on us...I suggest that people call their lenders and find out if they can refi before something like this happens, at least check your loan papers with your lender!!
Dec 07, 2007 10:17 AM