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The current mortgage lending industry is very unstable and volatile. Every day you can pick up the newspaper and read about another lender going out of business. There are record numbers of mortgage foreclosures and defaults across the country and there are a couple of main reasons for this. Three years ago the mortgage lenders started selling two and three-year adjustable rate mortgages. Rates were very low at the time and they could give low rates fixed for either the two or the three year period. The low rates made these loans enticing and they sold a large amount of these loans. The problems started when they put large margins on the loans so when the fixed period ended the rates went through the roof. Combine that with fast talking loan officers who didn't disclose that the rates were only fixed for a couple of years; add in decreasing property values in Florida and it created the perfect storm for mortgage lenders. The result of this perfect storm is that there is currently a record number of homes in foreclosure and default. Mortgage lenders have either gone out of business or lost large amounts of money and when lenders lose money they raise rates. I now anticipate that by the end of this year you will not be able to get a fixed interest rate under 7%. If you have one of these adjustable rate mortgages I suggest you call me NOW before it is too late @ 727-395-9888.
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