Top 4 finance news this week
Hi all,
Here’s a rundown of the top 4 finance news this week.
1. Home affordable Refinance has helped 60,000 borrowers: An US government data release on 13th August, 2009 reveals that so far 60,000 borrowers have been able to refinance their mortgages under the Home Affordable Refinance program.
The refinance program is limited to mortgages backed by government sponsored agencies - Fannie Mae and Freddie Mac. Borrowers could take advantage of this program provided their mortgages didn’t exceed 105% of the current home value.
2. Mortgage clinic for homeowners: The Neighborhood Assistance Corporation of America along with Bank of America and Citigroup organized mortgage clinics to modify loans for homeowners. They have traveled across the South and Midwest negotiating with lenders on behalf of homeowners in order to slash mortgage costs and have their interest rates reduced to as low as 2%. There were 300 counselors to review financial statements of homeowners and calculate a mortgage payment they can afford. Know more…
3. Mortgage rates go up: 30 year fixed mortgages rates have gone up this week, thereby bringing down the number of loan applications. According to a survey conducted by the National Mortgage Bankers Association, national average weekly rates on 30 year mortgages have increased to 5.38%, up from 5.17% last week. Average rates on 15 year fixed mortgages have climbed to 4.17%, up from 4.60% last week. Due to rising rates, loan applications have reduced by 3.5% as compared to the previous week.
4.Credit card rules to change from next week: Some of the new credit card rules, which were scheduled to take effect from July, 2010, would actually be followed from next week. The rules taking effect from next week are:
*Credit card issuers will have to provide a 45 days’ notice to debtors prior to raising their interest rates or changing the terms and conditions of the contract.
*Card issuers should send bills to customers 21 days ahead of the payment due date.