[-BB-]

Yeah, trusting coporations/market to correct/regulate itself is plain stupid....the consumer gets hurt in the end.

And what about government imposed regulations?
Take Cook Cty (IL) for example. They put in some regulation about mandatory credit counceling for sub-prime borrowers and now 90% of the mtg co's have pulled out and people there are unable to secure a loan at a decent rate.

 

[SkaredShtles]

<snip>.there was a good article on money.cnn.com about why the stock market is taking a huge hit from the subprime problem

I think they may have been over exaggerating... it really hasn't take a "huge" hit:

 

[Silver]

there is nothing wrong with an interest only loan... if you use it right.
If your values continue to appreciate, you do not run into a negative equity situation. Even if it doesnt (but stays at par) and you take the money you saved by getting the lower int-only loan and then invest it, at an average rate of return, you end up ahead of the game.

And % wise, how many borrowers do you think did that?

 

[Silver]

And what about government imposed regulations?
Take Cook Cty (IL) for example. They put in some regulation about mandatory credit counceling for sub-prime borrowers and now 90% of the mtg co's have pulled out and people there are unable to secure a loan at a decent rate.

Which may have been a bad regulation, or it may have been a case of the mortgage companies going off to pick lower hanging fruit. I don't know. Do you have a link to the regulation?

Of course, it doesn't matter now, since those same sub-prime borrowers can't get a loan anywhere...

 

[ire]

I think they may have been over exaggerating... it really hasn't take a "huge" hit:

Huge was my word I was up around 8% in June (retirement account) and I dropped down to .3% in the span of about a week, I had a bit of sticker shock. The market has started to rebound some though.

And what about government imposed regulations?
Take Cook Cty (IL) for example. They put in some regulation about mandatory credit counceling for sub-prime borrowers and now 90% of the mtg co's have pulled out and people there are unable to secure a loan at a decent rate.

Not all regulation is good, I would like a link if you could find one. One thing interesting about this is the fact that brokers pulled out becuase the consumer was required to get counseling....if you're pessimistic you might view this as the companies bailing becuase they couldn't as easily prey on these people, OR maybe people weren't willing to get counseling and the market dried up.

 

[Silver]

Huge was my word I was up around 8% in June (retirement account) and I dropped down to .3% in the span of about a week, I had a bit of sticker shock. The market has started to rebound some though.

I'm still up just under 8% for the year. Half of my retirement account is invested outside the US though...

 

[manimal]

Without a doubt the best benefit I got from my military service was my VA mortgage. Great interest rate from a major bank and pretty much automatic approval.

I didn't really know squat about mortgages when I bought my house, so I'm not gonna go calling people who get duped all kinds of names. It could have happened to me.

i thought a VA mortgage was going to be a big help for me too but i ended up with a better deal through my bank's first time buyers/community assistance loan thingy. 100% fixed, no PMI, no closing costs and about 1.5% lower interest rate than the VA would give me.

 

[valve bouncer]

i thought a VA mortgage was going to be a big help for me too but i ended up with a better deal through my bank's first time buyers/community assistance loan thingy. 100% fixed, no PMI, no closing costs and about 1.5% lower interest rate than the VA would give me.

Pays to shop around eh? I wonder though how many vets out there are sitting back thinking they've got a screaming deal on their mortgage but are really paying over the odds.