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New Mortgage Laws?

I recently heard that there were new laws that vetoed the variable rates for home mortgages. Is there any truth to this? And if so, does the law apply to Tennessee?

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome gemini,

I think you're talking about the Bill approved by the Senate on the 14th of dec which spoke about offering relief to borrowers having ARMs. As far as I know, it is applicable nationwide.

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sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Yes Gemini, the Federal government will allow homeowners in Tennessee to avail FHA insured loans in order to refinance their ARMs which are likely to reset shortly from their low teaser rates to very higher rates of interest.

The government has also decided to make FHA loans more accessible to homeowners and in this regard it has even lowered the down payment requirement to 1.5% from 3% and the loan limit will is expected to go up in high cost areas.

By the way, are you in any kind of trouble and is that with your ARM? If you can come up with some more details, may be it will be easier for me to suggest more options.

Take Care

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banker0679's picture
banker0679 | Joined: November 15, 2007 10:05 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

you're probably speaking of the Freeze on ARM rates.....
you will need to call your current lender to see if you qualify.

I think it only applies to subprime mortgages....

This doesnt apply to new mortgages

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

adjustable rate mortgages are still available in general; i would be astonished to see a ban on them in this industry.

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lisa.scherzer's picture
lisa.scherzer | Joined: January 4, 2008 08:48 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you are in an adjustable rate mortgage that you are having trouble refinancing then I would look into these options. Otherwise, I would look into refinancing since the fixed rate mortgage on a 30 year is in the mid 5's right now.

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Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

well, it's appreciable that the government has taken such an initiative but it doesn't include borrowers who have missed a payment. Moreover, it is expected that only 7% to 20% of homeowners in mortgage trouble will be a part of the plan.

There are some eligibility criteria as given below:

  • Your loan should reset from January 1, 2008 to July 31, 2010.
  • You may not be able to repay the loan once the rate resets.
  • Most importantly, your loan should have been originated between 2005 and July 2006.

There are mixed opinions though. Some feel it's good for borrowers falling behind on their loans whereas others feel subprime borrowers would remain in subprime loans because after the rate resets at the end of 5 years, payments may go up and borrowers will either have to sell homes or refinance to get out of the trouble.

So, isn't there any way out?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Where and who do you seek out to get this help? Please give phone numbers or web sites as I really need some help quick. I have not yet messed a payment but I will if I don't get help. I don't qualify for a refinance because of loos of income.
Thanks

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lisa.scherzer's picture
lisa.scherzer | Joined: January 4, 2008 08:48 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

Have you already applied for a refinance? I ask since you had mentioned that you don't qualify. Are you still employed? Do you know why your credit score is? How much you owe on your mortgage? and what your home is worth? I can then see what options you have at this time.

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome guest,

To freeze your rate, you will have to talk to your lender or existing loan servicer only. He is the person who will do so.

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charles.armbruster's picture
charles.armbruster | Joined: October 12, 2006 04:26 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Information for GUEST: go to "http://www.995hope.com/" for some advice. GOOD LUCK!!

[size=9:429f7afa80][color=Red:429f7afa80][Email address deactivated as per forum rules. Thanks.][/color:429f7afa80][/size:429f7afa80]

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