Credit Crisis of 2008 Volume 2: Taking advantage of the Mortgage Programs we HAVE!!!
Greetings Everyone,
Today is October 9th, 802pm.
Uptown Financial Corp. is located in Minneapolis, Minnesota. The evening air is cool and brisk, but overall a beautiful evening at 55 degrees. Sporting Front Update: Twins lost out to Chicago White Sox and didn't make the playoffs. The Minnesota Vikings are 2-3 after a stirring win in New Orleans. The Minnesota Wild start their season soon and the Timberwolves are 2-0 in preseason.
Life is as usual---and somewhat normal.
Now here is where life turns----Wall Street has dropped nearly 20% in two weeks---down 40% over the past year, from 14,000 to 8500. The futures are also down again---people are calling for a total drop to 7500.
Today's Rates: 30 yr. Fixed 5.875% & FHA 30 yr. Fixed 6.000%
This is the second posting in a long series of postings from Uptown Financial Corp. and those who surround us. With the 'Great Bailout Bill of 2008' now signed into reality, the spread of the credit crisis has gone global with the European Banks failing and Global backing for the banks worldwide. The Asian market is also now starting to feel the pinch---the reports on the TV blaring behind me are talking of Insurance companies in Asia failing, Reits going belly up etc. When will it end? The crystal ball would be nice---a true Global DeLeveraging is going on.
The Focus of this Blog is to help clients focus and prepare for the future with the programs we HAVE right now!
My crystal ball feels that we need to be taking advantage of the 'MAX CASH OUT' programs that we still have at our fingertips from banks. I foresee these programs going away and banks doing away with allowing any sort of 'equity stripping' on properties owned. The future may be one where the only way to truly take advantage of 'equity' in homes is to sell rather than 'taking gains'. We have already seen many banks exiting the Home Equity Line of Credit lending to individuals, the freezing of Home Equity Lines of Credit for no reason or the 'reassesment of value' for homes.
We currently have several clients taking advantage of the 'cheap' cash while they still can---the credit markets have come to a stand still and the availability of more credit in the future is definitely on 'shaky' ground, to say the least. Business lines have dried up, Stated Income Loans--based on good credit have ceased and Credit Cards will soon be pulling back their reins.
The other trend that is alarming, is the fact the LIBOR rate is nearing all time highs. This may put people in existing ARMS is harms way for large potential increases in their monthly payments. Although it is difficult to predict--the recent trend has been an large swing of volatility in the Bond market---toying with the level of Interest rates. There is talk of a Government intervention to temporarily lower interest rates across the board-----if this happens, we will see the largest swing of refinances of all time.
Long and short, the sky has not fallen---yet. My prediction is that comedy movies will be at a premium on Net Flix this winter. Gas is down and funny as it is---Saturday Night live is on tonight---it's Thursday!!! With the election merely weeks away--the stability the Presidential direction will be able to provide, may just be the catalyst to move the mind set of the people in the right direction. The psyche is challened right now and looking for a positive direction, starving for the leadership everyone needs.
Until next time---feel free to visit us at www.UptownFinancail.com or email/call at any time. We like to talk about weather, sports, music and of course Mortgages/Financial Markets.
In order to help educate our clients, network circles and public in general. We have been gathering professoinal perspectives from a wide array of industries to provide insights/takes on the current events of today. Should anyone have questions, comments or simply like to talk--Please do not hesitate to contact the professionals at Uptown Financial Corp. at any time.
All Current posts can also be read on our website, www.UptownFinancial.com in the Resources Section in the current Blogs Tag.
Stay Tuned and Keep Posted.
Take Care,
Ben Coulter
Uptown Financial Corp.
612-216-1388
612-677-3100
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