With a struggling economy in full force, many homeowners are forced to short sell or foreclose on their houses, which can be detrimental to the credit score as well as a person’s wellbeing. Losing a home is a very traumatic experience, but when a person is laid off from a job, a mortgage payment that was within the budget suddenly becomes impossible to pay. Homeowners are not the only people who are affected by the burst of the mortgage bubble; big mortgage lenders and banks were having to be bailed out due to poor investments and risky loans.
Big Mortgage Companies Charged in Federal Courts
Fannie Mae and Freddie Mac are some of the top names in mortgage loans, and many individuals who were unable to qualify for mortgage loans during the recession received funding for homes with little money down, but by 2008, the risky investments had reached more than $244 billion of the total portfolio. These two companies were charged with fraud for not disclosing these risky investments, which was unfair to those who had invested their own hard-earned dollars in the companies.
Lowest Interest Rates in Years
For those who are lucky enough to be employed during a difficult economic time, snatching up a low mortgage loan rate can be a huge benefit to the burst. Many young adults and couples who may have never anticipated purchasing real estate are able to afford condominiums, townhomes, or even starter homes at monthly payments that are even lower than rent. A 30-year mortgage loan interest rate dipped below 4 percent, and almost to 3 percent for a 15-year loan. People are now able to invest in real estate without having to pay huge monthly interest payments, and the rates don’t appear to be going up anytime soon. Financial analysts are anticipating that the rates will stay low for another year at least. Those who have high interest rates on mortgage loans obtained several years ago can also reap the benefits through a refinance.
Filling Out the Forms Factually
One crucial part of obtaining any loan is complete honesty when filling out the application. Dishonesty about income and employment is up 50 percent in the past two years, and this can result in loss of ability to obtain the loan. Even those who have financial struggles can qualify for bad credit installment loans from GreatPlainsLending.com which can be a relief to money struggles and emergency cash needs.
Ever-Changing Rates and Terms
The financial world is drastically different than it was a decade ago, and many customers are able to capitalize on the low interest rates that are available.