All Press Releases for November 24, 2007

It May Already Be Too Late for Borrowers with ARMs

Timing Is Critical for Borrowers with ARMs That Are Scheduled to Recast or Reset

    /24-7PressRelease/ - PEORIA, IL, November 24, 2007 - On November 9, 2007, in a conference call, Mike Quinn SVP Single Family Risk Officer for Fannie Mae announced "meaningful across the board loan price increases on loans having credit scores below 680 and Loan To Vaule's above 70%".

The interest rates on an estimated $1 trillion+ loans are scheduled to reset or recast in 2008, leaving numerous borrowers across the country in need of new financing in order to avoid higher payments, unfavorable terms or even possible foreclosure. Refinancing should always be a priority when dealing with a loan that's scheduled to recast or reset, but it's even more important to act with haste in volatile and rapidly changing markets, like the one borrowers are currently facing today.

"The market's gone through a lot of changes this year, and I'm sure we're going to be seeing even more adjustments," states Laure Feld, a Certified Mortgage Planning Specialist with American Mortgage Lending, Inc. a mortgage Brokerage company based in Peoria, Il. "We've had record numbers of foreclosures and the subprime market is collapsing, but as of yet--in terms of underwriting--prime mortgages haven't felt the impact of those factors. However, you never know when underwriting guidelines are going to start constricting.

By consulting an experienced Mortgage Planner, borrowers can gain the insight that will help them to determine the best course of action for their individual situations, and possibly save them hundreds or thousands of dollars on their next refinance.

"The issue is, each transaction and each borrower is unique, some may have a profile that is at higher risk of potential market changes, while others have less to be concerned about," adds Feld. "The best way to protect yourself from any potential difficulties, higher fees or higher rates is to consult with a Certified Mortgage Planning Specialist who understands the market and its nuances. Now may be the best time to make a move, but you'll never know if you don't evaluate your overall mortgage situation. With mortgages, as with any other financial matter, early intervention, education and clarity are key in making the safest, most sound decisions."

Laure Feld can be reached for comments at or 309-688-5568

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Contact Information

Laurice Feld
American Mortgage Lending, Inc.
Peoria, Il
Voice: 309-688-5568
E-Mail: Email Us Here
Website: Visit Our Website


pdf transcript of the conference call from Fannie Mae's website