Also, we are doing away with the Option Arms. In addition to that the new credit scoring model will be out soon and that will change the way people qualify for a home loan. The time to refi is NOW! within the next 90 days most people will not be able to regardless of how much equity they have or don't have.
Wouldn't that be according to what the borrower does with the money that he is getting every month, with the lower payment compared to a 30Y fixed? Money is a product...if the borrower is sophisticated enough to understand this...then he should buy money at the cheapest rate, rather than use high cost credit cards and let the balance revolve... The trouble here is that Joe Consumer, does not understand money and how to use it. If he makes more money with it compared to the cost, then this should be considered. Michael B. P.S. I am not advocating using your home as security for frivolous spending...Just understand the product...keep your costs down when borrowing money.
Could you illustrate how conforming the scoring model will achieve this quote below... good or bad? My Equifax (now named CSI) model will now improve for the east coast side of my credit profile....Trans union (Central) and Experian (west coast) will now have the same score...beautiful! I am in the top tier...and my status will not change when it comes to my profile...but I drive a 1990 Plymouth Voyager with simulated wood grain siding...that is another story.. In addition to that the new credit scoring model will be out soon and that will change the way people qualify for a home loan.
Your correct! The only problem is that most people ARE overspent and can't catch up and they can't refi because they don't have enough equity to borrower against to pay off high interest credit debt?? That's the rubbbbbbbbb.
Guess where the 200 a month that I save, goes from my option arm folks....? (I have not missed a month as I have a full time job, together with my trading, but I will retire soon and resume with full time trading) Thats right...in my Retail Spot Forex Fund and Wifey's IRA...My fund makes 40% per year and Wifey's IRA makes similar returns with her QQQQ option spreads... Michael B.
I can confirm your statement: One of my ventures deals with this data. The situation has changed in magnitude over the years but basically the largest dollar value of defaults is largest amongst the overleveraged higher income borrowers. Modest wage earners are the group with the lowest defaults. There are many people in the areas where I live that are extremely leveraged: All is well until one of the situations you mention occurs and then they face big problems and need someone like you to help them avoid ruin. In my area of the country your services will be in high demand over the next few years......