joyofyoga

Recent Monthly Adjustable Mortgage Reset Values and a Look Ahead

The problem is not identifying which loans are "good" and which are "bad". If good paying borrowers cannot refinance into at least the same rate or better than they are currently paying when their rate resets they will invariably turn bad. Unfortunately the programs are gone that put the good paying borrowers into good loans. Most borrowers can't qualify as new guidelines have become prohibitive. Balance needs to be legislatured into this market. And Congress needs to increase the lending limits for Fannie, Freddie and FHA, as jumbo loans are priced out of the ballfield.