Florida Mortgage Foreclosure Rates are high, very high, will this help?

These days like this, You think it’s important to go back to the old mortgage primer and figure out exactly what all this news means to you, to your mortgage, to your home equity line and to your home’s financial future with more foreclosure news here.

It’s been said before, and It’ll be said again so please study and memorize this . . . the 30-year fixed is not tied to short term treasuries.

Fixed mortgage rates are tied to long term bonds and bond yields that move based on the outlook for the economy and inflation. And guess what? The long-term outlook say foreclsosure steals, for the economy isn’t exactly rosy right now.

Today’s rate cut does affect some short-term adjustable rate mortgages, but not really as much as you might think. Why? Because this rate cut was already priced into the market, maybe not three quarter's point, but definitely a half-point. So if you are facing a reset on your ARM, you’re in much better, yes much better, shape today than you were just six months ago.

For example, if your rate adjusts Febuary the first and your ARM is pegged to the 1-year treasury, than your reset is going to be to 5.25 percent as opposed to the 8.5 percent that it would have been in July or September. That’s going to make the payment much more manageable. Look here for one of the best foreclosure list and tracking sites.

So does this cut stem the foreclosure crisis? Maybe a bit on the margins, but not really, and here’s why . . . the bulk of the folks facing foreclosure are there simply because they can't make their monthly payments have no equity built up in their homes and no money to put down on a refinance.