{"id":2229,"date":"2008-07-29T01:58:03","date_gmt":"2008-07-29T06:58:03","guid":{"rendered":"http:\/\/magic1host.com\/blog\/2008\/07\/29\/where-we-stand-today-with-sub-prime-mortgages\/"},"modified":"2008-07-29T01:58:03","modified_gmt":"2008-07-29T06:58:03","slug":"where-we-stand-today-with-sub-prime-mortgages","status":"publish","type":"post","link":"https:\/\/magic1host.com\/blog\/?p=2229","title":{"rendered":"Where we Stand Today with Sub Prime Mortgages."},"content":{"rendered":"
by Rob Kosberg<\/div>\n

In the summer of 2005, sub-prime mortgage lending was at its peak. Rates were relatively low and lending guidelines were relatively loose.<\/p>\n

There were two main choices for sub-prime loans. The 2\/28 or the 3\/27. At the time, the “standard” sub-prime mortgage product was the 3\/27 ARM.<\/p>\n

The 3\/27 had a few basic traits: A fixed, 3-year “starter rate” and every six months thereafter, the mortgage rate changed. The formula by which it changed was usually (4.999 percent + the 6-month LIBOR rate). If the loan was interest only, it usually converted to principal + interest at the first adjustment, too.<\/p>\n

Because the summer of 2005 was the peak of sub-prime lending, it makes sense that the summer of 2008 is the peak of sub-prime adjusting.<\/p>\n

For homeowners with adjusting sub-prime loans, there is some (relative) good news<\/a> out there. Today, LIBOR hovers near 3.15 percent, meaning that an adjusted mortgage rate will be in the neighborhood of 8.15 – 9.15 percent.<\/p>\n

Many borrowers faced a 10.3 – 11.3 rate adjustment last year when the LIBOR was higher.<\/p>\n

Certainly interest rate and payment increases of any amount can cause financial hardship. If you are a sub-prime borrower and are having difficulty be sure to contact your lender before you start missing payments.<\/p>\n

\n
About the Author:<\/div>\n
If you are in the early stages to Buy a Home then check out Rob Kosbergs’ Detailed FREE Report on Buying your Dream Home with a Zero Down Mortgage<\/a> or for up to date Mortgage info visit his Mortgage Blog<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

In the summer of 2005, sub-prime mortgage lending was at its peak. Rates were relatively low and lending guidelines were relatively loose.<\/p>\n","protected":false},"author":1135,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[77],"class_list":["post-2229","post","type-post","status-publish","format-standard","hentry","category-business","tag-business"],"_links":{"self":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/2229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1135"}],"replies":[{"embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2229"}],"version-history":[{"count":0,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/2229\/revisions"}],"wp:attachment":[{"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/magic1host.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}