The Time is Now – REFINANCE

With two weekends of financial bad news: first, on September 7, Government announced to step in and taking over the secondary markets of Fannie Mae and Freddic Mac. Last weekend, Lehman Brothers had to close shop of 158 years filing bankruptcy and Merrill Lynch was bought by Bank of America with 50 billion $$. There’s Wamu and Wachovia in line to follow, make you wonder will our government be able to help them too?

There’s one good thing out of all these chilling economic depressed market: the mortgage rates are falling and are back to previous eight month level. E.G. 30 year fixed and 5/1 ARM is at 5.375% on conforming($417,000) and loan amount up to 729,500, 30 year fixed and 5 year ARM are 5.625% and 6.126% respectively. (Rates quoted are based on Monday, 9/15, market closed and are subject to changed)

If you purchased house within the past 5 years using ARM rates and your rate is about to reprice or even you have 1-2 year cushion, take this opportunity and refinance your loan to a fixed rate loan, if you plan to stay in the property for a while, or another more attractive ARM rate to better your payment monthly. Although the requirements and rules for applying loans are more restrictive and time consuming than a year ago, as long as you showed a good credit score and steady income, you should not have any problems to get refinanced.

Home owners should be responsible for their own mortgage finance as part of a healthy economic society.
Heaven helps those who help themselves. If there’s one less bad loan out there, I dare to say, there are, at least fifty more people will have a good night sleep.

Let’s all be patient and carefully and peacefully walk through this storm.

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