There has been a lot of talk recently about Uncle Sam stepping in to help out consumers facing looming adjustable rates. It appears almost certain that they will help some by locking in some adjustable rates at their current interest rate. Example..... If your mortgage is currently at a 5.5% but on February 1st it becomes adjustable and can adjust up to a 7.5% and significantly raise your payment, the government is going to step in and say NO, it stays at a 5.5% for now. I did not get all the details but it seems like there is going to be some pretty strict criteria to qualify. Strict enough that it will probably not change things for very many.

I think we are getting into some pretty tricky situations if the government starts stepping in and telling investors they are not going to be able to collect their previously agreed interest rates on their loans. Why would any investors CONTINUE to invest in mortgages if they know that there terms don't mean anything??? Then if there is a shortage of mortgage investors or people to buy the loans, the people that will do it are going to be able to charge nearly anything and rates will go through the roof!

I am curious to see what happens here, but I think government stepping in too much on this one may spell trouble??

Have a great weekend!

 

Jared