Brad Yzermans

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• Manage |RSSThe Future of Real Estate Lending

That 674 fico buyer with 20% down who's rate goes from 4.5% to 5.5% due to Fannie LLP adjustment will not die if you put that rate into perspective. Show him the cost of waiting for his credit to improve and he will see that the best deal is now. In my market prices are going up and every home has multiple offers. He should be thankful for 5.5%. Lets sayhe waits 1 year and fico gets back up after paying collections. Home prices or rates will likely be back up. Goo dchane he could wait and even with 720+ fico his rate could be 5.5% in the near future. All indicators show rates want to go up but govt. is artificially keepig them donw....and that can't last forever.

I know in most of California a 15 year mortgage just isn't an option. If everyone who owned a home tried to refinance into a 15 year mortgage they would literaly have to move out of state due to inability to afford the payment. Can you imagine 5-10 million homeowners picking up and moving out of state because a 15 year mtg. isn't feasable on a two earner family income? I agree with everything said in the article...yes, most are renting with a mortgage that gives most a nice tax deduction. I do feel sorry for the people getting loan modifications...what a joke....most modifications are 3-5 year adjustables....rates ranging from 3-4.5%. What kind of administration even allows that type of modification to happen knowing that the people won't be able to afford the new payment when it adjusts higher? And where do you think rates will be in 3-5 years with inflation kicking in by then? Yikes! intogourdSeems hypocritical of the decision makers to even let that be an option. My guess is politicians allow this in hopes that the problem goes away for a few years until they can get re-elected.