VirginiaBob
09-01-2007, 04:12 AM
What the President proposed today was to allow some borrowers that previously would not have qualified to get FHA insurance because they were late on their current mortgage to get the insurance (for a premium at the taxpayers cost, of course) provided that these 5 conditions are met:
1. They have a history of on-time mortgage payments before the borrower's teaser rates expired and loans reset
2. Their interest rates must have or will reset between June 2005 and December 2009
3. They have three percent cash or equity in the home
4. They have a sustained history of employment
5. They have sufficient income to make the mortgage payment
So basically, the responsible people that got fixed rate mortgages paid the full interest rate the last few years, while the people who went for the teaser rate the last few years paid less interest, yet still get the break of paying fixed interest from now on.
1. They have a history of on-time mortgage payments before the borrower's teaser rates expired and loans reset
2. Their interest rates must have or will reset between June 2005 and December 2009
3. They have three percent cash or equity in the home
4. They have a sustained history of employment
5. They have sufficient income to make the mortgage payment
So basically, the responsible people that got fixed rate mortgages paid the full interest rate the last few years, while the people who went for the teaser rate the last few years paid less interest, yet still get the break of paying fixed interest from now on.