Keith Gumbinger
Keith Gumbinger
answer ask bank bankers believe ensure fixed helps loan obvious pitching product question rates rise variable
The question you need to ask yourself is, why would a bank be pitching you this product at this time? The obvious answer is that bankers believe rates will rise in the future. Getting you out of a fixed loan and into a variable one helps ensure profitability on your account.
business slips stuff whenever
Whenever business slips a little, lenders trot this stuff out.
allowing declining housing interest rate rising risks today together top
What is new today is that lenders are allowing for the layering of risks on top of one another. What we don't know is what if we put all these risks together and put them in a rising interest rate environment, a declining housing market, or a weakening economy.
cut low mortgage people rates
With rates as low as they are people can cut years off the mortgage for the same monthly payment.
credit good homes lend mac percent qualify
Fannie Mae and Freddie Mac will even lend 103 percent of the homes value. You need to have very good credit to qualify for this kind of loan.
credit good homes lend mac percent qualify
Fannie Mae and Freddie Mac will even lend 103 percent of the homes value, ... You need to have very good credit to qualify for this kind of loan.
interest lock optimal
The optimal thing to do is to lock in your interest rate.
beginning benefit cold interest people product rate selected welcome
Welcome to the cold reality. A lot of people selected short-term interest rate product and are now beginning to see how these things benefit the lender.
builder buyers definitely expect house pay seller
I would definitely expect more of it. Buyers may not pay for it. The seller or builder may pay for it to get a house sold.
cuts economy fed investors mortgage rates
Mortgage rates come down when fixed-income investors think the economy is slowing, not because the Fed cuts rates.
borrow buyers cash flush home layer markets minimum money mortgage pay possible risk top value
Mortgage markets have been so flush with cash that home buyers are able to layer one risk on top of the other. It's possible to borrow more than the value of the home, put in no money of your own and pay a minimum monthly payment.
certainly difficult high prices time
Leveraging yourself out at a time when (home) prices are very high certainly could set you up for difficult times.
access allowing people reasonably
Lenders are allowing people reasonably unfettered access to their equity.
either good sound
It doesn't sound like either of them got a particularly good deal.