nobody is advertising great deals on ARMS that will let your rate drop with the short term interest rate and allow people to pull tons of equity out of the homes?
2007-12-20 00:46:47 · 4 answers · asked by Billy Shat 7 in Business & Finance ➔ Renting & Real Estate
A few reasons:
Rates have been this low recently (a couple of years ago). When they dropped to these levels a few years ago, these were levels not seen since the 1960's.
Banks have lost their appetite for risk. ARM's represent risk for them and they aren't as willing to push them. It would also be politically inappropriate to push them right now when so many people are having issues repaying resent loans.
Less people have substantial equity in their homes to pull. Some areas value of homes have decreased and the amount of equity available is lower.
ARM's are still available and if you have equity and need it, HELOC's are still available, just to fewer people.
good luck!
2007-12-20 00:58:12 · answer #1 · answered by Rush is a band 7 · 1⤊ 0⤋
Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every monthcompanies offer different interest rates so it is a good idea to shop around for the best deal before settling on one particular lender.
2007-12-20 20:57:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Thats right. Lenders are not as eager to make home equity loans when the equity is declining along with home values.
2007-12-20 10:18:09 · answer #3 · answered by npk 7 · 1⤊ 0⤋
It was called "Creative Financing" and some lenders took advantage of the situation and now are back peddling fast because the government has stepped in.
2007-12-20 08:55:22 · answer #4 · answered by Anonymous · 1⤊ 0⤋