Virginia mortgage rates and industry news

I've received a lot emails and phone calls recently regarding mortgage companies going out of business, so I thought I would address the issue!

Here's some good advice from Ali Velshi:

 If your mortgage company goes out of business, your mortgage is still safe. ... The mortgage part of that business, the good mortgages get bought by another bank. So nothing will happen to you or your home at the moment.

All of this is having an effect on the price of your home or the ability of someone to buy your home because they can't get credit easily. But your home and your mortgage are not affected by the fact that your mortgage company may go out of business.

If you hear that your bank or mortgage company is going out of business, your obligation is to continue to pay your mortgage unless you get in writing that that situation is changed. Sometimes, your bank sells your mortgage to someone else. Then you follow those instructions.

But when you hear your company is in trouble, that doesn't give you the option of not paying your mortgage. So please continue to do that because if you don't pay your mortgage, it will affect your credit rating and that will affect your money -- your ability to raise money, to borrow money at a good interest rate.

THIS BRINGS US TO OUR NEXT ISSUE....

With a $700 Billion dollar national financial crisis, stemming mainly from the mortgage meltdown, how will it affect the way you borrow money for a home in the very near future?

As the government continues to "bail out" Wall Street, Fannie and Freddie, mortgage lenders will continue to increase credit standards and increase down payment requirements. 

Over the past twelve months alone, we've seen;  100% financing and stated income loans all but disappear, sub-prime loans vanish, and credit and equity standards go through the roof.

How should YOU react to all of this?  If I were interested in purchasing a home or refinancing an existing one, I would act now, rather than run the risk of not being able to get financing in the future.  That risk is VERY REAL.  I know many people out there are waiting for rates to drop another 1/2 percent, but that may not happen, and waiting for it to happen only decreases your chances of potentially getting financing in the future.  Rates are still historically low RIGHT NOW!  It's important to analyze your current situation and determine if now is the right time. 

Feel free to call or email to discuss your own personal situation and concerns.

Until then...hang in there!

Paul Thistle, President

Loan Planet