Do You Think The Credit Crunch Is Over?

Question

and when do u think house prices will start to rise??? and also on my mortgage agreement contract thingy it says i will go onto standard variable rate how do i know what this is in advance so i can keep my eye on it?

thanks

Answer 1

you mean the recession that nobody is calling a recession?

No.

As for house prices, I will leave that to the experts here.

:0)

Answer 2

Smart spenders never experienced a credit crunch.  Not all areas of U.S. have seen a decrease in home prices.   A variable mtg is the absolute worse type to have.   Your mortgage papers will tell you which indicator affects the rate.   The intelligent thing to do is Refinance to a fixed rate so there will be no surprises.

Answer 3

In my area of SoCal, the prognosticators are saying that it won't be until 2010 that our housing prices rebound.  That being said, I think it depends on your market.  We have a big supply of mortgages that are scheduled to reset and according to our newspaper, will bring a new supply of foreclosures.  Your mortgage agreement is telling you that your teaser rate is about to end and that will reset the interest you pay, thus your mortgage payment will change.

Answer 4

The credit crunch hasn't even kicked in yet so there is some real gloom ahead.

This is obvious by looking in any High St - people are still boutique shopping, airports - people are still holidaying. Honestly the credit crunch will really be here when nobody can afford to do such things then it will level out and then it may sort itself out a bit. So far we haven't even felt it. As for mortgages you just have to check it all the time to see what it is doing but it is not going to be pleasant.

Answer 5

Not by a long shot ! I suggest you contact your mortgage provider and get them to explain the 'thingy'

Answer 6

Run away from the variable mortgage - NOW!  Seriously.  Dump it as soon as you can.

Answer 7

Figure another year to two years before we start seeing an appreciable increase in property values, although some areas may rebound faster - this is something that no one really knows.

IN answer to question two, go back into your contract and look for a baseline index (LIBOR, Prime rate etc.).  The contract will tell you how they figure the variable rate and what it is based on (it may be Prime plus 1 or something to that effect - which would mean the Prime Rate plus 1 percent).

Answer 8

Credit crunch - not over.

House prices to rise in 2-5 years

Rate - lender will send you notice 30 days before it adjusts.