Tucson SOME Subprime Borrowers COULD see 5 year Freeze in Interest Rate
December 5, 2007
Post Tags: ARM-5-year-freeze-on-rates , Subprime-Freeze-on-interest
Some Subprime and ARM borrowers Could see a freeze on their interest rates. 
Late breaking news on a 5 Year fix on interest rates for SOME borrows under certain conditions. This is being reported on the Bloomberg.com Subprime Rate Five-Year Fix Agreed by U.S. Regulators (Update7)
“The freeze may apply to mortgages issued between January 2005 and July 2007 that are currently scheduled to reset between January 2008 and July 2010, said a person who has seen a draft proposal. Borrowers whose credit scores are below 660 out of a possible 850 and haven’t risen by 10 percent since the loan was issued will be given priority.
Those with scores above 660 will be more closely scrutinized to determine whether they are eligible or must continue making payments under existing terms, said the person.”
The same is being reported at Inman News service: Report: lenders agree to five-year freeze on ARM loans
Since Inman is a subscription service I won’t provide the link to the article since it will go dead in a week. But for this week anyone can read the article posted there under the above title.
President Bush is to speak on this agreement tomorrow and provide more details. What does this mean for Tucson Subprime and ARM borrowers? Time and the details of the agreement will tell
