- Borrowers must have at least 3% equity in the home. That requirement alone is going to eliminate many borrowers who now owe more on their home than it is worth.
- More than a quarter of subprime borrowers have missed a payment before their rates reset. That is a fact making political solutions more difficult.
- About 48% of the subprime borrowers won't qualify to refinance into a mortgage that conforms to the new standards given by Fannie Mae and Freddie Mac.
- The 1/2 point interest rate cut just passed by the Federal Reserve will do very little to help those whose mortgages are adjusting.
- U.S. home prices fell by 3.2% in the second quarter of this year, setting a new record.
- It would take nearly 10 months to sell off all the existing homes on the market right now; the longest amount of time in at least 8 years.
- The average increase for a rate reset is 26%, or about $400.00 per month.
Here's hoping that there will be better news to relay to you next time!
As always, 'til next time - it's all good!