Greenspan has spoken, and the rates went up. Now he hasn't spoken, and the rates are going up anyway, just because he's "going" to speak.. That poor man gets blamed for everything from the rising mortgage rates to the possible collapse of human civilization itself. Could you imagine waking up in the morning to have your first cup of coffee and have your wife/husband show you the front page of the daily newspaper with "your" picture on the head-lines saying, "The entire financial community goes into cardiac arrest because (your name here) used the word "Excessive Exuberance" in relationship to the stock market." ?

Can you possibly imagine the kind of pressure that man is under, to be sure that every single word he utters is first screened and personally tested before his says it, so that it doesn't send the entire world into panic and depression? I personally can't even begin to think what it must be like for him. I have said many things, even recently, that were said without thinking, and certainly weren't intended to get the reaction that it did, let alone having the entire world listen to everything I have to say and pass it on through multimedia technology. Well, he's doing a great job! I'm just glad it's not me!

Conforming interest rates hit 8% this week for the first time in more than two years. As far as I'm concerned that is still good, they are in the single digits numbers and in years past we saw them up going on their way to almost 20%, at least second mortgages were.

We have a wonderful fairly new loan program that is called the FHA Access. It is 100% loan financing. There is a combination of a standard 97% 30 year fixed rate only, with a "silent second" for the remaining 3% of the down, carried back. There are no payments on the second note and it bears interest at 6% all due and payable in 20years. The terms on the first vary with the market at time of lock in. If you sell the home or refinance it earlier, of course, both loans would have to be paid off at that time. This loan is a wonderful help for those first time home buyers that have very limited cash to invest but could qualify for the payments. IF you know of anyone who might be interested in this program, please let me know! 
 

 

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