Marc's Mortgage Matter's

Rates this week have not gotten better and have headed North most of the week. Lenders still don't want to take chances and are only approving solid loans. Loans are closing though, and interestingly enough a number of tough loans have closed recently too. Yup it did take longer and all but in the end we did get the rate and terms needed to make it work. Some very pleased borrowers are now lifetime referrals :)

Last week I read somewhere a large firm offering ARMS and stating how good a deal that is now, and why one should NOT go for a 30yr fixed. Nonsense pray, how can you even consider an adjustable after this recent mess? I don't care how long you know you'll stay in the home, it just makes no sense. Fixed rates are close enough and low enough compared with many arms. I have a few borrowers who knowingly took a few years ago 3 & 5 year arms (a few took the dreaded option arms) and are really stuck. They thought they'd upgrade or move by now but with everything that transpired they are not going anywhere and they are stuck with high interest rate arms with little equity and nothing to do but keep paying and waiting for rosier times.

True story, or urban myth, from the Jacksonville , Fl., Police Dept.:
A man goes to a party and has too much to drink. His friends plead with him to let them take him home. He says no -- he only lives a mile away.
About five blocks from party, the police pull him over for weaving and ask him to get out of the car and walk the line. Just as he starts, the police radio blares out a notice of a robbery taking place in a house just a block away. The police tell the man to stay put, they will be right back and they hop a fence and run down the street to the robbery.
The guy waits and waits and finally decides to drive home. When he gets there, he tells his wife he is going to bed, and to tell anyone who might come looking for him that he has the flu and has been in bed all day.
A few hours later the police knock on the door. They ask if Mr. Joe is there and his wife says yes. They ask to see him and she replies that he is in bed with the flu and has been so all day.
The police have his driver's license. They ask to see his car and she asks, “Why?”

They insist on seeing his car, so she takes them to the garage. She opens the door. There sitting in the garage is the police car, with all its lights still flashing.

Rumor has it that fellow used to be mortgage guy heavy in option arms ;)