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Clayton Said:

How does the recent rise in Mortgage Rates Affect Selling Prices?

We Answered:

This is the reason why the bailout won't work. You are right about the housing prices dropping. Any rise in additional expense of purchasing a home will hinder buyers from entering the market. The sale price of homes will fall to adjust to the higher expense. With the lower sale price, appraisers will need to use the lower prices to compare value of new sales. Thus reducing the number of new sales. Then the banks will suffer again and guess what ? We will bail them out again to restart the cycle.
If the value comes in under the sale price you will need to renegotiate the contract.

Jean Said:

How could a mortgage company benefit from high rates of people possibly defaulting,.?

We Answered:

They would not benefit.

If a bank it would hurt their reserve ratio and put them at risk of a takeover by the feds. If not a bank it wouldn't matter.

Hope this helps
Jerry-the-bookkeeper

Stephanie Said:

Mortgage rates will now drop alot...?

We Answered:

You will see a very little down adjustment only if you have a debt that is tie to prime rate like ARM, HELOC and CC rates. Anything that is not tie to prime rate will have no impact from this rate reduction.

Ramon Said:

How much will interest rates drop if the fed cuts the prime rate .25%?

We Answered:

The "Fed", a private enterprise, controls the rate banks pay for loans from the reserve. (wholesale rate)

The prime interest rate is a retail rate banks charge their best costumers.

Mortgage rates are not set or controlled by any one; they are a function of market conditions.

When the Fed adjust rates there is no guarantee mortgage rates will do anything. They could go up, down or stay the same.

Sherri Said:

Will the banks pass on the latest interest rate cut in full to their mortgage customers.If not why not?

We Answered:

if its a fixed rate mortgage then no

Carl Said:

Is refinancing still called refinancing even if you already paid off the old mortgage and own the house?

We Answered:

Just remember a mortgage is an agreement which a bank lends you to buy a home.The terms and rate are what is prevailing at the time you take the mortgage.

Vernon Said:

Where can I find data on the number of mortgage deliquencies on a county by county basis, also foreclosures?

We Answered:

foreclosures.com will let you see how many foreclosures there have been within the past year either by state, city, or zip code. It will tell you when it was filed, when the person bought the house, how much they mortgaged it for, and what the current value of the house is. You can get that much information for free. They do have additional information that you can get for a fee, but I have no idea what that is as I'm not paying them. But, sounds like what you are needing is all part of their free section.