The Rate Freeze Idea – Give Us Your Opinion
If you haven’t been keeping up with the news of late, you may not be aware of the new "Rate Freeze" idea that is being kicked around by the Hope Now Alliance, coalition of lenders, servicers, investors and community groups, put together by the Treasury Department. Details of the plan have not been finalized, but in essence, it would freeze adjustable rate mortgages from taking a big jump at their next scheduled rate adjustment date, but only to those borrowers judged unable to make payments at the reset rates.
That would be determined based on a borrower’s debt and income. Borrowers for whom loans are unaffordable even at the initial rates would likely not qualify, as is the case in current programs already offered by some lenders.
We have an opinion on this "Rate Freeze" idea, but would love to hear yours. Do you think this idea (if implemented) will really help anything here? Do you think the idea is fair if someone is going to decide FOR YOU whether you can afford a higher payment or not in order to qualify for a freeze on your ARM? We think it’s a feeble effort with a band aid to fix a hemorrhage, but would love to hear what you think. Leave us your comment below.