Mortgage Mania Blend
By Drew Johnson on Wednesday, August 8th, 2007 :: 10:51 amCategory: Online Articles, Reviews, Financial News
Todays blend focuses on the much-bemoaned mortgage industry. News outlets have focused a lot lately on the sickened mortgage industry and its affect on the economy as a whole. We’ll take a look at a Yahoo Finance article that describes how the trouble in the sub-prime category is affecting loans at the other end of the spectrum. Then we’ll glance over at CNNMoney to get an in-depth look at the entire mortgage bubble. Then we’ll get some insight from The Economist on their take on the credit squeeze. Throughout all this, we’ll examine how the debt-relief and debt consolidation industry will be affected.
The Wall Street Journal Online writer James R. Hagerty has an article in Yahoo Finance that describes how the sub-prime troubles are hurting jumbo loan borrowers.
For those who don’t know, sub-prime borrowers are those with the lowest credit score who’ve taken out home loans. They are causing big trouble in the mortgage-lending industry because these borrowers are defaulting in record numbers on their home-mortgages. Last week, a major sub-prime lender, American Home Mortgage Investment Corp. filed for bankruptcy. Most other major mortgage lenders have already stopped giving sub-prime loans.
On the other end of the spectrum, lenders, afraid of losing the faith of their investors, are increasing rates on jumbo home-mortgage loans (where mortgages exceed $417,000). What this means, basically, is borrowers with good credit scores who can afford a large down payment are finding it more difficult to purchase homes.
All of this has a chilling effect on the economy as a whole, as home-buying is a major economic driving force. This could seriously affect debtors in need of a debt consolidation loan, as banks have become more unwilling to lend personal loans, and it will become more difficult to get a home equity loan or line of credit to cover high-interest credit card debt.
Related Debt Consolidation Articles
- Easily Eliminate Debt
Debt consolidation and our service utilize different methods to eliminate debt. - Key Elements of Our Debt Solution
Our service and debt consolidation with a personal loan rank among the most used consumer methods to pay off multiple high-interest debts. - Reduce Financial Stress
Debt consolidation and our service help consumers handle the emotional stress that often arises from facing multiple outstanding debts. - Reduce Your Credit Card Debt with Our Program
You can avoid incurring more debt with MyUSADebt program. - Maximize Your Savings with Our Services and Evade Debt Consolidation
Our service helps to control your finances more than debt consolidation by allowing you to eliminate debt according to your financial ability.
