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RATES ARE FLIRTING WITH TWO YEAR LOWS!!! WHAT SHOULD BE DONE???

By
Mortgage and Lending with Financial Access Incorporated

What would the best thing for Real Estate be right now? Answer - Lower rates. What can the Government do to help the most people without bailing out the banks that leveraged all those mortgage securities into a whole lot of money before the bottom fell out? Answer - Lower rates. How can we help the average Joe? With lower rates people will refinance and have a lower payment - the extra cash flow can go towards savings or purchasing or stocks or commodities or bonds. A lot of people may just use the extra cash to live. We can stop the current free fall of the housing values by having a reset of mortgages across the board. Those who have been making their payments on time and can continue to do so will have the same payment but the principal will be lower and the length of the loan will be lower also. Those who are in trouble, the lender will look at current value and decide if the loan can be made. If the borrower can not even make a basic house payment based on a much lower rate then they will lose their home but if they are still employed and the negative or adjustable rate is what is hitting them then the lower interest rate and the lower principal will help. Who will this negatively affect the most? Banks and lenders ( investors ). There are a lot of bugs to work out but it is a good starting point.

Don't listen to people who say "It cant be done." Listen to those who ask "How can it be done?"

 

This morning I came into the office with an e-mail from one of my lender's that had a 5.375% rate with ZERO points. It has since changed but I'm telling you we are still at 5.625% solidly and a real hope for rates to continue to float down. Wouldn't a 3.75% or an 4.25% sound good? What could we do with that? How many deals in our industry would be able to be done? How many more people would be employed? Do you think that could help the economy?

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Mother Lode
Real Living Sugar Pine Realty - Sonora, CA
Real Estate Master

It won't be easy to get out of this mess we're in. Lower rates are a definite step in the right direction. Thanks for the insight and pep talk. Mike C (aka blog boy)

Nov 26, 2008 04:07 AM