What Fed Moves Mean for Mortgage Rates

Greed Brought Us to This Financial Disaster

The Greedy Players are the home buyer, loan agent, and loan broker companies.

The home buyer has already taken out all or most of the equity of a home during the housing boom. So they got their money!

The loan agent assisting buyers to falsify their income to get into a home they will never be able to afford after their ZERO Down interest only 5yrs ARM ends. They got their home sale and loan commissions. So what happened to the real-estate agent's ethic code? And can you guess how many ZERO Down interest only 5yrs ARM loans they sold? And these loans caused the bidding wars and the over inflated pricing of homes.

The loan brokers selling the loans to the bank that has no substance! So can you guess how many home loans we ZERO down were sold in this country? The Broker go their money!

You would think it be good practice to limit this type of loan, huh...

Nate of CA @ Oct 03, 2008 16:12:47 PM

Another Bitter Fixed Rate Idiot

Mitch from NJ has it just right. I also bought in 2004 with a 5.25% 30 yr fixed. Now I am paying almost $1800 a month for a (at the time) $309K home I put $70K down on...while the house across the street is selling for $204K. I can't do the 'walk away' that is so popular because I invested 70K already.

I may have to get a scrip from my dr. for depression. Thanks a lot Chairman of the Federal Reserve, who said "It's not a bubble".

http://www.washingtonpost.com/wp-dyn/content/article/2005/10/26/AR2005102602255.html

Bush and his cronies can go to Hell. Right along with the irresponsible lending institutions. Karma is a bitch folks...Karma is a bitch.

Yankee of CA @ May 14, 2008 11:43:16 AM

Govt bailout

I find it quite amazing that there are so many judgemental people in this country. I read all the comments and I'd like to congratulate all the people who have been able to save for a rainy day and make over 100k per year. I hope the Lord continues to bless you and that you never make a mistake or experience a catastrophe or lose your job. People in the "ghetto" are people - the same people who want to buy homes and better their lives. They don't look like the typical people i've seen who are losing their homes...Everyone needs to be educated about rates, different loan programs and what they can really afford prior to buying a home. I don't own a home but I think everyone had good intentions. When you hear about the individual stories, it's very sad. They bought the homes and were able to afford their initial mortgages -loan officers have told me about the scams they fell into and that many were told they'd be able to re-finance. If you're so worried about what your tax dollars go to, do you know exactly how you tax dollar is spent? Have you done any real research? Are you really that stupid to think that your paycheck would increase or you'd get a better tax refund if there was no bailout? Did you protest the issuance of economic stimulus checks?

Please....Where I live In California, you'd need at least 3800.00 first and security to rent a decent 2 or 3 bedroom place - do you think these homeowners have that kind of money in order to move? The govt. can always find money when it needs to, for wars, to assist other countries during disasters, etc. I don't think cash is necessary - they just need to lower their rates so they can keep their homes. Please have a little compassion for others.

Wendy of CA @ May 10, 2008 13:27:48 PM

Handouts = Higher Taxes for the Innocent People

I agree with many of you who posted above... I sure as heck do not want to bear the burden of higher taxes given a government bailout! For those of you who complain about higher gas/food prices affecting your ability to pay your mortgages, please... You know that when you buy on credit, especially such a large purchase such as a house, you should always have savings to cover that rainy day. Stop whining and complaining. You chose to sign that promissory note so that you could live the American dream. And now you are asking for handouts when you chose poorly. I earn a decent salary and have money in the bank for retirement, kids college and rainy days, yet I do not own a house. I can run out now and get a nice big one if I so chose, but I am more prudent with my money and know that I should save by renting (or get a smaller one). For all of you that bought the small house at the peak, too bad. You should have known better and waited for a real estate downturn such as now. I may now look to buy something smaller that won't break my bank nor put me in a position asking for government handouts. BE RESPONSIBLE WITH YOUR MONEY, DON"T BURDEN THE INNOCENT PEOPLE WITH MORE TAXES, AND ABOVE ALL... SHUT THE HECK UP, YOU WHINY COMPLAINERS!!!

CA of CO @ May 07, 2008 17:09:01 PM

Historical non-similarities

When the recession in the early 1980s occurred, home interest rates in Lancaster, CA were around 18% except for the California State bonds which lowered interest rates to about 11%. I don't understand why, even though it seems we are heading into a similar recession, the mortgage experts are stating mortgage rates will remain low.

wileeeb of NV @ May 04, 2008 17:50:17 PM

Foof for thought

Did any of us with a mortgage know that the cost of gas would go up so high and probably higher since OPEC is suggesting it could go to $200 a barrel? Did any of us know that food would go up so much that rice would be rationed? Did any of us know that the housing market would fail? Did any of us know that the value of our houses would be 1/2 what they were when we took out our mortgages? Did any of us know that one day it would cost more for gas to drive to work than we make at our job?

Are we all irresponsible and stupid or were we all consumed by the same American Dream?

I don't think it is a matter of not affording our mortgages when we took them as it is of trying to make ends meet with the cost of gas and food so high and going higher. At the rate it is going we may all find that as we lose jobs and buy gas and groceries and pay for health care and new taxes imposed by a new president that we are one day in the same boat. Life can and does turn on a dime and it will continue to do so and we can only hope that the dime does not stop at us.

Penny of CA @ May 04, 2008 00:38:33 AM

Blame Game...

Everyone wants to blame someone...other than themselves. I understand a few people got screwed. However, people need to understand that you, and only you, are responsible for your choices in life. You complain about the brokers, the lenders, the government, etc. You chose to buy a house. I think I speak for most responsible people when I say, I don't care if you bought a cheap house for the market conditions... you still bought more house than you could afford. You could have chosen to rent instead. You could have moved out of the expensive market, and if a 2 hour commute was not far enough, then you need to seriously reconsider your line of work and the opportunities it affords.

I live in San Diego, which has some of the highest prices around. I know what you mean about a postage stamp home selling for 450k+....but you know what? When all those people greedy for home appreciation bought houses 3 years ago, I RENTED. since when did renting become a bad word? I used that time to save money, pay off debt, and buy that flat screen TV....all without risking losing a house, and my good credit. People say "The American Dream" is home ownership. For me it is freedom and liberty, and the option to buy a home, if and when I can afford it. I am not there yet, but when I am I will do it right.

Stop complaining...live with your mistakes, at least maybe you taught your kids a lesson.

MJ of CA @ May 01, 2008 18:01:38 PM

I wish I were as lucky as the heartless loudmouths

It's easy for some of you to say I deserve to be worried and to be looking for help. You say I bought more than I could afford. You are so very wrong. I moved to Washington DC because the economic downturn in 2002 caused my small consulting business to fail and my husband to be simultaneously laid off from his job at Compaq. I need the work and the federal government was hiring. Is it my fault the DC housing marked was crazy, and we moved up here with nearly bankrupt credit in the middle of a housing boom? We bought the smallest, most modest single-family home we could, with the cheapest, sanest financing we could qualify for, as soon as possible, having waited three years and scrimped our savings to do so.

Now, we find that our home has lost 25 % of its value and our planned refinance of this horrible adjustible rate mortgage is impossible.

You say this is all our fault and accuse us of being "greedy", "irresponsible" or "naive". Wanna rethink that position?

How about the greedy builders, who simply would not build small, affordable 3x2 singles anywhere in the DC area in the era of the McMansion? I had to accept a 2-hour commute and still paid a half million dollars for a tiny house on a postage stamp yard. I did everything my years of education and 30 years of working and savings and owning real estate taught me were the rules, and watched the prices of homes in this area triple in the 3 years it took for us to qualify for a mortgage, only to see them drop like a stone as soon as we finally had our house.

Before you are so quick to blame the homeowner in trouble, Mr. High Horse, remember one little phrase: "there but for the grace of God go you."

Angela Blair of VA @ May 01, 2008 14:48:09 PM