Mark this date- December 15th.  If you are struggling to make your mortgage payment and are possibly facing foreclosure, then you will want to know that on this date you may be eligible for government-sponsored mortgage relief. Beginning on December 15th, Fannie Mae and Freddie Mac, the huge, government-controlled mortgage underwriters, will sponsor various kinds of relief to homeowners at risk of foreclosure.

Not everyone is eligible for assistance though- all participants must meet certain predetermined criteria.  For example, you may qualify for mortgage relief if…

• You are more than three months behind on your mortgage payments.
• You owe the bank at least 90% of what your home is worth.
• You live in the home as your primary residence.
• Not to be in bankruptcy.
• You can prove that you’re not just trying to skip out on the loan.

So, you know you qualify… what kind of relief is available?  At this time banks could agree to lower your interest rate or extend the life of the loan in order to lower monthly payments and make the mortgage more affordable.  While this probably won’t fix the housing crisis, it may help your shrinking wallet.   

For information on getting more help please visit HUD’s Guide To Avoiding Foreclosure.

Remember, it is truly a privilege to have the freedom to participate in the selection of our government.  Regardless of your political affiliations, ABBA First Mortgage, Inc. would like to encourage everyone to get out and vote today.

In a widely anticipated move, the Federal Open Market Committee has elected to cut the key rate by .50 percent bringing the federal funds rate to 1%- its lowest level in four years!

Now, with the rate cut many of our clients are looking for lower rates.  But does a Fed rate cut mean that mortgage rates will go down?  While we have been working very hard to make sure that our clients expectations are clear with regard to this issue their is still a lot of misinformation floating around.  This is one of the best explanations I have read recently… click here to read the article.

For further analysis and discussion please see FOMC Cuts Key Interest Rate by 50 Basis Points to 1.0% at FoxBusiness.com.

You may have noticed that ABBA First was having technical difficulties over the past several days which effected our website, emails, etc.  We received many phone calls asking if we were still in business and want to thank all of our clients for their genuine concern.  Rest assured, ABBA First Mortgage, Inc. is  still in business and ready to serve your mortgage needs.  

All technical difficulties have been successfully resolved.  As always you  can reach us at 866-676-3349 or visit the Contact page of our website to reach one of our mortgage specialists via email.

“Governmental maneuvers in the recent weeks to thaw the frozen credit market (including pledges to take a direct ownership in a large number of financial institutions and providing guarantees of loan repayments thus eliminating counter-party risk between banks) seem to have provided some much needed salutary effect.”
Prahalad Venkateshan, PhD- Capital Markets

Someone recently asked me if we have seen it become easier to obtain a mortgage since the bailout was approved.  The answer is no or perhaps more accurately not yet.  We are hopeful that we will see the result of these actions by the government, love em’ or hate em’, trickling down to mortgage consumers in the very near future.

In the meantime though, it is important that consumers expectations are clear when it comes to the nature of lending and the mortgage process as it stands today.  To obtain the very best terms, you’ve got to have a strong credit history.  You’ve got to have a down payment.  You’ve got to be able to document your income and assets.  Sounds crazy, I know… but in the past several years you could very easily obtain a mortgage without any of these factors in place.  I believe that we are now seeing a return to common sense lending and I believe that is a very very good thing for all of us.

Please take a look at the testimonials from many of our satisfied customers.  At ABBA First Mortgage, Inc. we believe that our customers are our most valued assets.  We would be delighted to help you with your mortgage needs too.  As always you can contact us at 866-676-3349 or fill out our online mortgage application.

According to FoxNews.com, “The action revives the central bank’s rate-cutting campaign which had been halted in June out of concerns that those low rates would worsen inflation. Since then, however, economic and financial conditions have dangerously deteriorated, forcing the Fed to reverse course.” 

While many conclusions can be drawn from this action, it is clear that the Fed recognizes the significance of the economic crisis we are facing and the decision to cut rates underscores their belief that we need immediate intervention.

It remains to be seen how this will effect mortgage interest rates.  The market has improved on the heels of the decision and we are hoping for a drop in rates.  Please contnue to check ABBAFirst.com for all the latest news and interest rate information.    

ABBA First Mortgage, Inc. is pleased to announce that our new Rate Tracker is available.

What is the Rate Tracker?
We know that you are busy and constantly checking the web for updated rates is time consuming and tedious. Let us do the work for you! This new tool will allow you to input the interest rate that you want and we will contact you when that rate becomes available.

How does it work?
Your information is stored in our database and cross-checked everyday with the most up-to-date interest rates. When the interest rate and terms you are looking for become available, ABBA First Mortgage, Inc. will contact you so that you can begin the application process.

Does it sound simple?  It is.  We are thrilled to offer this new service to you and believe that it adds even more value to our already unparalleled service, guaranteed low rates and guaranteed low closing costs. To try the new tool for yourself click here.

From FoxNews.com:

WASHINGTON —  The Federal Reserve and other countries’ central banks announced new steps Monday that makes billions of dollars available to squeezed banks here and abroad to battle a worsening credit crisis that threatens to unhinge the U.S. economy.

The Fed said the action is intended to “expand significantly” the availability of cash available to financial institutions in an effort to provide relief to the worst credit crisis since the Great Depression. In taking the action, the Fed cited “continued strains” in the demand for short-term funding.

Central banks will continue to work closely and are prepared to take “appropriate steps as needed” to stem the fallout, the Fed said.

Under one new step of relief, the Fed will boost the amount of 84-day cash loans available to U.S. banks. The Fed is increasing the amount to $75 billion, up from the current $25 billion starting on Oct. 6. Banks bid on a slice of the loans at an auction.

All told, the move will triple the supply of 84-day loans to $225 billion from $75 billion, the Fed said.

The Fed also said it will supply $330 billion to other central banks, expanding ongoing currency “swap” arrangements with them where dollars are traded for their currencies.

The move comes as the U.S. financial meltdown’s tendrils have ensnared banks in Britain, the Benelux and Germany.

In a widely anticipated move, The Fed has elected to keep the federal funds rate, that is, the rate that banks charge each other at 2%. Although intended to stave off inflation and temper downside risks to growth, it is apparent that the Fed is hoping this will calm the turbulent markets as well.

We expect the volatility in interest rates to continue as it is very likely that the Fed will leave they key rate at 2% for the rest of the year.

Please feel free to contact us if you have questions or concern about how this may effect you.

ABBA First Mortgage, Inc. will be closed on Monday, September 1st in observance of Memorial Day.  We will resume normal business hours on Tuesday, September 2nd.  We look forward to serving all of your mortgage needs…