The New World Of Mortgage Loans

Let's think back for second to the year 2000. Home costs were low and interest rates were decent. All of a sudden the feds drop interest rates and home values start to climb. Does anyone remember why? Of course we do but often forget the real reasons why anything in lending happens in the first place. 9/11 was a disaster to this country that almost crippled the economy. But once again the feds save the day by dramatically dropping mortgage interest rates.

If we take a look at what happens over the next few years from 2001 to 2005, we notice that not only do rates stay low but home values are increasing at a ratio never before seen. So of course as Americans when our equity increases and we can see tangible revenue, we take advantage of it. I don't think I know anyone that owned a home during that period who did not do a cash out refi. So as it were rapidly 80% of all home owners are cash out to 85% or more of their homes value. To keep the loans coming our nations most trusted lenders start coming up with over the top methods of lending procedures. Creating ridiculous loans that do nothing but get the American homeowner more broke and in more trouble than this country has ever seen.

So here we are mid 2008 and nobody can get approved to buy a new mattress much less a home. However there is home. The investors are sucking up the foreclosures and leveling out the market slowing but surely. In this new era of lending we must now think ahead and not just for now. Are there any real incentives left for homeowners and homebuyers right now. Sure you just have to look around and pick through the garbage. The basic conventional and FHA loans are still available and there are some novelty mortgage products left. But we must ask ourselves. What do I really want out of this loan and proceed from there.

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Easy Made Mortgage