Utah Second Mortgage To See Rate Freeze?
Those looking for a Utah Second Mortgage may be affected by the lender agreement to freeze rates on loans. Unfortunately, the agreement seems likely to INCREASE rates rather than lower, or even maintain them. The NY Time writes:
The plan, hammered out after weeks of talks among Treasury Department officials, mortgage lenders and Wall Street firms, would allow distressed borrowers who are current on their payments to keep their low introductory rates and escape an increase of 30 percent or more in their monthly payments when the rates expire.
Democratic lawmakers and presidential contenders quickly criticized the plan as being too timid and promoted more ambitious proposals of their own.
The agreement, to be formally announced Thursday by President Bush, is expected to contain numerous limitations that would exclude many — if not most — subprime borrowers, according to industry executives who have seen it. It would exclude those who are delinquent on their payments — about 22 percent of all subprime borrowers, according to First American LoanPerformance, an industry research firm.
Those considering a mortgage loan may want to race to the nearest lender. Rates are gonna skyrocket after this gets implemented.
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