Signature RM Blog

With the ability to get easy money nearly gone. Here are a few things you must know.

1. Mortgages - The days of subprime mortgages are headed for extinction.  Especially those loans requiring no proof of income.  According to the Federal Reserve one in seven banks have tighten their underwriting standards.  This includes all Mortgage products from Good Credit to subprime.  The days of 100% mortgage financing have pretty much gone out the window.  The products are still our there, but the amount of hoops that you must jump through will make it very difficult.  If you have an adjustable rate mortgage and your rate will be higher than 7.25%, now is the time to refinance your mortgage.

2. Home Equity Loans - The ability to get a home equity loan (HELOC) has diminished along with the the ability to obtain a mortgage. The days of 100% equity lines have vanished.  Most companies are not lending money over 80% of the equity of your home.  If you need a HELOC loan you may be better off just doing a first mortgage and pulling out the extra cash you need.

3. Credit Cards - Banks are looking to make up their losses through Credit Cards.  They have increased the rates and have increased the fees associated with the cards.  Now is not the time to be paying your credit cards late.

4. Auto Loans - The auto industry does not seem to be hurt by the credit crunch at this time. Now the purchase of new cars is a different story and we will save that for another time.

With all this information is hard to figure out what really is best.  If you would like an analysis of what is best for you feel free to contact me and we discuss you situation.