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The Sky Is Not Falling…Yet

Unless you’ve been living under a rock you’ve probably heard about the recent credit crisis in the United States. Spurned by the collapse of the sub-prime or bad credit mortgage industry, and depending on which news channel you’ve been watching, you might have heard that there is no money for mortgage loans, that credit card companies are cutting people off, and oh yes…forget about that car loan. While it’s true that the sub-prime mortgage industry has imploded and that bad credit lenders are filing for bankruptcy right and left, regrettably laying people off, the homeowners affected by this crisis are mainly those with poor credit.

“Americans are fat, gun-toting criminals…Do you want cheese with that?”You may have also heard that European investors downgraded the credit ratings of US mortgage companies making it more difficult for these companies to fund their loans. Again, the companies affected here are sub-prime mortgage lenders. While it’s true that Europeans perceive Americans as fat, stupid, gun-toting criminals that don’t pay their bills (just ask Jeremy Clarkson, host of Top Gear…he’ll tell you) the majority of what you’re hearing in the news can be attributed to these sub-prime mortgage lenders that you see dropping like flies. Americans are certainly not stupid and most of us do pay our bills on time. As for the rest…well, I digress.

The mortgage industry is still alive and kicking in the United States; if you are a homeowner with good credit in need of a mortgage you can find the funding you need. Mortgage lenders as a rule are greedy bastards, so you can expect to see them exploit this “crisis” to make a buck. Headline News reported this morning that mortgage lenders are raising interest rates and imposing “strict” loan terms to “keep pace with the current economic environment.” This is corporate speak for taking advantage of people to make a buck.

This “credit crisis” or shall we say excuse for raising mortgage rates and imposing unfavorable loan terms on the hard-working American homeowner, is why doing your homework and comparison shopping is critical if you are in the market for a new loan or to refinance your existing mortgage. Again, if you have poor credit or a jumbo mortgage you’ll probably have to wait for blue skies to come again; however, if you have good credit and a chunk of equity in your home, refinancing with good rates and loan conditions is still possible.

Yield Spread Premium hasn’t gone away and lenders will still try and sell you an outrageous mortgage to improve their bottom line. This can be avoided by learning how to recognize their greedy bag of tricks, starting with the unnecessary markup of your mortgage interest rate. You can learn more about refinancing your mortgage without being taken advantage of with my video toolkit. For free access to the videos, training materials, and support staff click on the DVD image you see at the top of this page. There is no obligation to you now or in the future…really, no strings attached.

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