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Problems in the Mortgage Markets; What Happened 

   Recent news stories have been overwhelmingly negative about the mortgage and housing industries. Most of the negative news is a result of loans from non-conforming high risk mortgages. These are mortgages that were done with no income or asset verification from borrowers, many of whom also had very poor credit histories.

   Making matters worse, most of these mortgages were Adjustable Rate loans whose interest rates went up to amounts that the borrowers were unprepared to pay. Many of the Non-Conforming loans are adjusting to rates above 12%. Most of these loans had prepayment penalties which kept borrowers from refinancing before their rates went up. As a result of the recent crisis in the financial and lending markets, many lenders that made these types of loans are changing their lending guidelines. Many of these loan products have been suspended. It may be several months before most of these loan products are available again. When they do become available, they will be much harder to get. In the future, these higher risk loan programs will only be available to customers with very good credit profiles.

                             Got Lemons? Make Lemonade!

   The good news is, if you have a decent credit score and stable income,  you will have no problem getting a mortgage today. Interest rates have been coming down the last few days. With so many homes on the market, it is truly a buyer's market. Many home sellers are willing to take less for their homes. This is really a great time to buy a house!