American Mortgage Blog

In most countries 30-yr fixed rate loans are in the minority. Here in the United States, however, the majority of residential mortgages are fixed rate loans with an amortization spread over 30 years – but some argue that might be changing.

The big news recently was the $25 billion-plus settlement between the states and the five largest banks. But, unfortunately, the national mortgage settlement will not help everyone in trouble. For example, to pick one state, numbers indicate that 62% of California mortgages are held by Freddie Mac and Fannie Mae. The settlement does not apply to those.

Up until the last few years, events overseas had little or no impact on our bond or stock markets. Traders would go to work in the morning in New York, and although they knew what happened overnight in other markets, it was rarely too much of a concern unless something cataclysmic had occurred.

During his State of the Union Address, President Obama made several comments directed at housing, and at the mortgage market. In particular, he announced that he will send Congress a plan that will allow responsible homeowners who are current on their payments to save $3,000 a year on their mortgage by refinancing. If this plan requires Congressional approval, it will probably have a very low likelihood of succeeding in 2012.