Home Loan Modification Affected by Mortgage Rate Trends
Home loan modification was a buzz word for quite some time in early 2009. Everyone and their brother, or sister for that matter, wanted to modify their mortgage. Some people were modifying to avoid foreclosure while others were refinancing at extremely low rates to save large sums of money. Either way, the historically low mortgage rates made it very alluring to get a mortgage modification.
For the last few weeks the mortgage rate trends have totally changed. At the beginning of the year mortgage rates were going down, down and down some more. Now that the 10 year treasury rate is uptrending, the mortgage rate trend has also changed. No one really knows how high mortgage rates are going to go, but it sure seems that the uptrend has begun. It is scary to think about what this is going to do to the overall housing market; only time will tell.
Inflation Investments are the Future?
Filed under: Commodities Bull Market, Financing, Investing, Stock Market History, Stock Market Predictions, Stock Picks
A very good article on Inflation Investments points out that hyperinflation is quite possible in the very near future. With Ben Bernanke printing as much money as possible, it is almost inevitable. If we do see inflation in the coming years, the place to be is in commodity investments. As many of you know, this site has been strongly invested in commodities for quite some time and we think the commodities bull market is only half way complete. That means we could see another NINE years of heavy commodity gains.
Extremely Bad Credit Mortgage
Getting an extremely bad credit mortgage is something that can be very difficult. With the subprime crisis still playing out, lenders are very strict with their lending practices. This does not mean that you cannot get a mortgage with extremely bad credit. The first thing that needs to be done is to be honest with yourself. Do you have the financial backing to pay for a mortgage?
If the answer is yes, your next step is to get a credit score. Getting a credit score is easily done online. Make sure to read the fine print as many of the credit score agencies claim to be “free,” but in fact are not. You are not charged until many months later and it ends up being much more than it would have been to just pay $10 for a credit score. If your score is below 499, you are going to have very little chance at getting any kind of mortgage. If your credit is above this level, you will need to prove that you have been financially responsible over the last year.
If you have not been financially responsible, it is likely that you will not be able to get a mortgage. If you do have extremely bad credit and you apply for a mortgage, be prepared to get a mortgage rate of well over 10%. Lenders realize you are a risky lender and they are going to punish you for your bad financial decisions. This should not deter you from getting a home, but you need to be aware of this fact.
The next step is to contact lenders. You can use online resources to apply for a mortgage. Oftentimes, it is much easier to do this online rather than going to a mortgage lender physically. It will take some time for the lender to get back to you, so make sure to apply to more than one lender.