Posted on: 23rd Jun, 2008 04:43 am
This video is showing how the U.S Sub Prime Mortgage Crisis occurred.
Like to hear how can we get out of this Sub Prime Mortgage Crisis.
Thank in advance.
Thank in advance.
More and more information on the mortgage crisis is popping up, I think this is good. People are getting educated and can avoid common mistakes learned by those who lost so much during this crisis.
Although rising prices prompted many cashout refinances, purchases of 100% of the home sale price by sub-680 FICO borrowers were mostly pegged to adjusting indexes with high margins to compensate for risk.
Those borrowers who estimated their incomes to properly rise to then afford their increased mortgage payments are doing fine; those who required refinancing at the end of their short Fixed-period are experiencing major problems with their lower home values and their inability to find new financing until such time as their principal has reduced and/or their home value has again begun to rise.
The only way I can forecast clear sailing for Canadian mortgageholders is if their indices hold steady -- if not, they will certainly experience similar fiscal pain.
Those borrowers who estimated their incomes to properly rise to then afford their increased mortgage payments are doing fine; those who required refinancing at the end of their short Fixed-period are experiencing major problems with their lower home values and their inability to find new financing until such time as their principal has reduced and/or their home value has again begun to rise.
The only way I can forecast clear sailing for Canadian mortgageholders is if their indices hold steady -- if not, they will certainly experience similar fiscal pain.
I didn't learn anything new -- I'm trying to understand to whom the video is targeted.