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View Diary: Why what Ben Bernanke said yesterday should make you angry (102 comments)

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  •  The lowest published rates require paying points (1+ / 0-)
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    Dburn

    So, the rates quoted are a little misleading.  But I know of three residential mortgages that people got recently with 3.5% interest rate for 30 years.  

    •  With points and a substantial Downstroke (0+ / 0-)

      Although I have read of a few finance companies who are...wait for it...getting back into sub-prime. Some companies will buy homes for 20-36% either on the sale value or the mortgage value from the govt or banks desperate for real cash liquidity. Then they can do "rent to owns" , or sub-prime lending like a buy here, pay here car lot. Interest rates up in the teens but the mortgage balance lower.

      The real goal is to get as much as they can and then foreclose or evict/repo , fix and start over. More likely found in non-judicial foreclosure states.

      The 3.67 rate quoted as the "lowest ever in recorded history" always come with a who crap load of fees, points, and a large amount of upfront cash.

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