Friday, October 19, 2007

Welcome to the mortgage crunch

I’m sure many of you have noticed that the Dow Jones Industrial Average has been doing pretty well as of late, but yet it took a bit of a tumble last week. It seems that news out of the Fed that mortgages and the housing market may still drag down the economy. As homeowners with sub-prime and even prime mortgage rates are going through foreclosure, the process for getting new loans of re-financing is becoming more and more difficult and lenders are raising the bar when it comes to what is perceived as an acceptable credit score.
With all this in mind, we are hearing more and more advertising for bad credit mortgages on the radio and television. So yes, there are lenders who are willing to give the money out, but at what rate? Furthermore, will there be a negative impact on the economy? There are many people, such as myself, who think so, but at the same time, I think that it would be hard to overlook the back that the housing market is crumbling. We need buyers to help offset the sellers. Granted, I do feel that there is room for correction in the marketplace, but I think that 2008 will be the year to buy a new home for anyone thinking about it. For those who have had trouble getting loans, but are working their way back to financial stability, do your research before agreeing to any loan and get the one that’s right for you now, and in the future.


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