100% Loans. are They Gone for Good

With recentews of sub prime lenders such asew Century Title closing its division triggered scare among many other lenders. All major lenders in sub prime market or anyone who has a bad credit, credit score (FICO) below 600 willot be able to apply for 100% loans anymore. Today, you will have to show at least 5% down payment. Almost all of us heard theews on TV, radio, Internet about foreclosures rising to unexpected high levels. People who got these loans, that are in default, got 2-5 year adjustable loans. What this means is that your $1,000 monthly mortgage payment may have gone up to $2,500 a month.ot many people can afford such huge payment and start to default and loose their properties. But what if you can refinance your home and pay off your mortgage This should be the answer to get rid of adjustable loans. When property values were going up through the roof, many homeowners refinanced to pull cash out, and sinceow we have decline, these homeowners own more money on their mortgage, that their house is worth. Because of rising foreclosure rates, many lawmakers start to put pressure on credit card companies, mortgages and eventually sub prime mortgages. Wall Street investors stop funding companies such asew Century Title and since there waso funding; lenders couldot make any loans. Many lenders also stop funding loans to anyone with credit score below 600. Because of risingumber of foreclosures, this has slightly changed mortgage industry. But who is to blame Mortgage companies for giving you bad credit loans Or Credit Card companies that charge you 24% interest rates The problem started few years back when most lenders, brokers, start to sell 1% loans. Well,ot many people bothered to find out what these loans are and how they work. Most people cared about one thing; our monthly payment is how much So who is to blame here It is you, the consumer You are the one that got into these loans, you are the one that didot find out or asked questions when you signed your mortgage papers, and you are the one that didot know that your payment will go up. People like to point fingers to blame someone, and because lenders stop funding 100% loans, everyone is pointing fingers at them, as they gave you these bad loans. Remember, you re the one that signed those papers. There is one big piece missing in mortgage, Educationot many people understand mortgages, and certainlyot many people understand their own credit scores. Everyone likes to shop, compare prices and most consumers went for the low rate offers who didot understand anything about how certain loan programs work. Education was missing and that is why there are so many foreclosures today. Lenders are carefulow and removed 100% loans from market. Here are some suggestions: -If you shop for a mortgage this will result in lower score. Each time lenders pull your credit an inquiry will be shown on your credit. More inquiries you have, the lower your sc