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Any TUGgers recently get new mortgage, car loan, credit card?

Carol C

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I hope this won't turn into a political thread. I'm just trying to figure out why they say on tv news that there's a credit freeze that requires a Fed (taxpayer) bailout of bad mortgage debt. I haven't experienced a credit freeze; today when I called a credit card company to say I'm going out of country, they offered me a hike in my credit line. I just don't get it. I also recently got quick online approval of a new credit card to use abroad. Again, I wonder why "they" say credit has been frozen and consumers and average Americans can't get credit. I'm not one of the well-to-do crowd, so why isn't the purported credit freeze affecting me? :shrug:

Anyone else here get a new home, auto or consumer loan or line of credit in the recent week(s) of "fiscal crisis"? Just curious to see a show of hands. I am sooo confused.
 
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I'm not real sure Carol but I think they are talking bout mortgages, (IMHOO) refinance, etc. Credit Cards are another issue as the banks will approve the amount your are asking for & the banks need all or any payments & finance charges they can get.

We just got a 2nd mortgage loan (LOC) from our Credit Union, wasn't for that much & at 4% APR, a good deal. Our house was appraised last year at $351k & this year for $253k, over a $98k lost but I know you know the reason for this as to the declining housing market. Our house was built in 2005 for $220k with pool, etc. We also refinance in Feb for our 1st mortgage & we did & got 5.5% interest rate! We bought a new convertible in Feb & got an interest rate with Wachovia at a little over 4%, does that help ya!!!
 

Twinkstarr

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Fifth Third Bank wouldn't let my sister change her regular 5/3 Mastercard into one that pays cash back. She's a private banking customer and has a 840 credit rating.

Well her other credit card company(BOA or Chase?), had no problem switching her Visa into a cash rewards Visa. After explaning the 5/3 problem(she got mad and cancelled that card). They issued her a Mastercard too.


I have a good friend, who's husband is a commercial loan officier with 5/3 here in OH. He's been spending a lot of time going out and telling customers they are changing the requirements on lines of credits, etc. Not easy, glad I sold my businees back in 2000. I went through a credit crunch in the early 90's and it wasn't fun.


With the way things are going, I decided to just go ahead and pay off my mortgage last week.
 

Cathyb

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what is a 5/3? :confused:
 

Twinkstarr

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what is a 5/3? :confused:
Fifth Third Bank, HQ in Cinci, OH.
Large regional bank in the midwest, also has branches in FL.

Use to have my corporate business with them. They were pretty touchy about the name themselves. I've heard Karen Finermann on Fast Money on CNBC refer to Fifth Third, as the bank with the stupidest name she ever heard. I think of all my former contacts cringing hearing that on national tv. :hysterical:
 

Carol C

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Fifth Third Bank, HQ in Cinci, OH.
Large regional bank in the midwest, also has branches in FL.
Speaking of Florida...Has anyone noticed that the banks that are going down almost overnight have huge exposure in Florida where the mortgage crisis is one of the worst? WAMU is one, and Wachovia is another...both bought privately (for now) and not with taxpayer $.

[deleted political portion]
 
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Icc5

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Line of Credit

We have the highest credit rating the broker ever has dealt with before and are remodeling a house we are inheiriting half of and started trying to get our line back in December. It took 4 months and we only got half of what we applied for. This is with our house fully paid off and the other house also paid off. Every day, we had to send more paperwork. Both my wife and I have been on the same jobs for years (35 for her, 39 for me). The amount we got was 30% of the value of our house and believe it or not our house value is still rising because of the school system we are in (both houses in the same district).
Bart
 

Wonka

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We have the highest credit rating the broker ever has dealt with before and are remodeling a house we are inheiriting half of and started trying to get our line back in December. It took 4 months and we only got half of what we applied for. This is with our house fully paid off and the other house also paid off. Every day, we had to send more paperwork. Both my wife and I have been on the same jobs for years (35 for her, 39 for me). The amount we got was 30% of the value of our house and believe it or not our house value is still rising because of the school system we are in (both houses in the same district).
Bart
Wow! If that isn't an example of the credit problems today, I don't know what is and it was all caused by greed and corruption.
 

short

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Loan on rental property.

My DH and i got a nonowner occupied loan on a new purchase rental property(bought a local house on a short pay which is a whole other story). We have excellent credit, plenty of income to by a 2nd home rental, bought the house at a good price under the appraisal, paid 20 percent down and closed in 21 days. The mortgage ended up being bought by Chase(which we knew ahead of time).

My Ax card recently increased my limit about 25 percent and I have a business credit card from Citibank that the limit has been increased several times and is now at $65,000(I maybe charge 2 or 3 thousand on a high month and pay it off each month).

I really do not see a credit crunch for people who do not need the credit. For those who have credit problems then yes there is a credit crunch but this should be expected.

Short
 

barndweller

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We refinanced recently. Countrywide. Went through with no problem even though our appraised value has dropped dramatically. We just wanted to get a lower rate and make our monthly outgo more manageable since we have retired. They tried to get us to open a equity line. They call about once a week. I guess they aren't getting enough takers for new credit. My 2 active cc have both raised my credit limit within the last few months even though I had not requested it. They must want me to charge more than I do. Ain't gonna happen.
 

Fern Modena

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Carol,
I think most of the people who are on TUG are not the ones who will be hard hit by the credit crunch. Generally they are upwardly mobile or upper middle class, own houses, and have credit lines/credit cards already established, which they treat well.

Now if you check down at Denny's or the local Burger King, or the Unemployment office, you'd find a different answer.

Fern
 

stmartinfan

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I heard an interview on NPR today with two business people who were facing credit shortages and it helped me understand some of the situations. One purchases materials he needs to complete large industrial plumbing projects and formerly received terms from his suppliers that allowed him to pay in 60-90 days. Now, they are requiring payment in 30 days, because of the tight credit market. That means he has to borrow money for the interim period, because he doesn't have the cash he needs to pay until his job is completed and he needs to pay on time to keep in good standing with his suppliers. His issue right now is that he hasn't factored the cost of borrowing into the bids he submitted for the jobs. The other interviewee owned a pet business and indicated that her bank had cut her line of credit. That meant she wouldn't be able to stock her store as heavily for the holiday season as she normally would, because she would usually pay for holiday orders with the line of credit then repay it after the goods sold. Both business people indicated that they had good credit ratings, so it wasn't an issue of being poor credit risks.
 

caribbean

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I got a car loan about 3 months ago with no problem. In fact had a bank and the credit union bidding against each other and got the rate down another 1%.
 

Emily

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My student loans just cleared. My car loan went through a few months ago. I was surprised that a local bank known to have higher rates was as competitive as internet bank we have used in the past.
 

3kids4me

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Our HELOC (home equity line of credit) was frozen in July. Many customers of Chase had this happen to them regardless of their credit rating (ours are both over 800) because Chase made blanket assumptions about the actual percentage of declining values in particular areas.

Many lines of credit that use real estate as a collateral will be at risk, because the value of real estate has declined so significantly. So, if you have a line of credit (not a loan, but the ability to take one out) that is, say, 75% of the value of your home, and the value of your home declines significantly, then the bank would certainly not want to lend against collateral that is no longer there. So...TUGgers that may have been affected are ones who are currently drawing on their line. If someone is in the middle of a large home remodeling project (which theoretically will at some point increase the final value of the home but hasn't yet) and is using the line to write checks to the contractor, they may find that the next check can't be written. Some TUGgers don't use their line but have it there for emergency purposes and have now found it is no longer usable at a time when they may need it. (Think of all the "middle/upper class" folks who work for Lehman Brothers.)

In this economy, I cringe when I see folks who have an "us versus them" mentality when it comes to these issues. (To be clear, I am not accusing anyone on this thread of doing this.) Anyone can lose their job. My daughter's best friend's father lost his lucrative job several months ago. Eventually they could no longer afford their house, it was foreclosed on, and they moved into a rental. They were not living beyond their means, but at some point the money runs out.

I too am surprised at the large amount of credit card offers we receive in the mail every day, but the only thing I can say is that it's probably somewhat low risk for the banks at a 20% interest rate and on a card that they can whip away after the first late payment. Still, it is amazing....

P.S. Just adding that it's a bit easier to get credit on a new loan, because the loan is technically backed by the value of what you are paying. The value of what you are paying is clear because you have just paid for it, whereas a home equity line is based on the value of your home if you were to sell it today. However, I recently heard of someone who tried to get a mortagage on a vacation home and was told that the bank would not finance it because the appraiser had declared the value to be less than what they just paid.
 
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Passepartout

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#1 Son and Family just sold a house in Phoenix area and are set to close on one in Seattle-land on 10-10/11. We hope. Stay tuned.

Jim Ricks
 

Liz Wolf-Spada

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My understanding is that this will affect business credit and liquidity the most, when businesses need a short term loan to cover supplies or payroll they borrow for a few days to get that loan, or even a few weeks, so they can pay it back when goods sell or they are repaid for loans they have out working for them. If banks tighten up credit it will affect businesses first and then us. It may lead to layoffs, further drops in the housing market and more economic slowdown to where the D words is just everyday conversation.
Liz
 

Elan

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However, I recently heard of someone who tried to get a mortagage on a vacation home and was told that the bank would not finance it because the appraiser had declared the value to be less than what they just paid.
Yeah, things have gotten so out of whack recently that appraisals are now starting to reflect the actual market value of the home. How bizarre is that?! ;)
 

Beaglemom3

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To Elan's point , the condo in the Space Coast of Florida that I considered buying 2 years ago @ $220k is now in lis pendens/pre-foreclosure at $61.5k and may have farther to go down.

To CarolC's post: I got a call telling me that my line of credit was being raised on my credit card, but I said, "no thanks, in fact, please close my account".

When I saw what % rates my credit cards were costing me, I took a secured share loan out from my credit union savings account - I borrowed money from my own savings - @ 4% and paid all of them off. Why did I do this ? I'm so undisciplined that if I took the money from savings, I'd never pay myself back. Beats the credit card interest rates of 10.99%, 15.99% and because I missed one payment on my UA FF card, 29.99% ! Loan sharks are cheaper !!!
Now, all zeroed out and closed !

I'm don't want credit anymore and will just make do. Will keep one or two cards with low limits for any unforseen Beaglemobile or other expenses. Good thing I like consignment and thrift shops.

Remember this ? Use It All; Wear It Out; Make It Do; or Go Without!
 
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3kids4me

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Yeah, things have gotten so out of whack recently that appraisals are now starting to reflect the actual market value of the home. How bizarre is that?! ;)
I know you said that tongue in cheek, but that can be argued two ways. If the market value of something is deemed as what someone is willing to pay, then you would think an appraisal would reflect the price that someone is indeed willing to pay because they just offered that amount. On the other hand, if someone has decided to offer a crazy amount that is much higher than comparable area sales, then I guess the appraisal might keep that in check.
 

Beaglemom3

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I know you said that tongue in cheek, but that can be argued two ways. If the market value of something is deemed as what someone is willing to pay, then you would think an appraisal would reflect the price that someone is indeed willing to pay because they just offered that amount. On the other hand, if someone has decided to offer a crazy amount that is much higher than comparable area sales, then I guess the appraisal might keep that in check.
One would think so, but then you get into "comps" and all. :shrug: You offer and pay whatever you'd like, however, if borrowing for this then will the bank approve ? If paying cash, "a fool and his money......."
It's a very uneven and unbalanced situation and will get worse IMHO.
Good post, Sharon. Evokes thoughts on value & worth.
 

Fern Modena

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I definitely remember your quote. We're on a fixed income now. Granted its comfortable--at this point, anyway. Even though we'd have to get jobs if things got really bad, we're lucky at this point. We don't have a lot of wants anymore. We can do without a lot. Our main extravagance is eating out. We live in a place made for that :) But we could cut down on that, too.

Fern

Remember this ? Use It All; Wear It Out; Make It Do; or Go Without!
 

Beaglemom3

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I definitely remember your quote. We're on a fixed income now. Granted its comfortable--at this point, anyway. Even though we'd have to get jobs if things got really bad, we're lucky at this point. We don't have a lot of wants anymore. We can do without a lot. Our main extravagance is eating out. We live in a place made for that :) But we could cut down on that, too.

Fern

Fern,
I'll bet your parents, like mine, went through the Great Depression, WWII and other experiences that forged their common sense approach to spending.
My grandparents were immigrants as well.
We are the keepers of their philosophy (except for that timesharing buying thing).
Thanks,
B.
 

funtime

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I just used those handy dandy credit card checks to write myself a credit card loan. I had been paying off my credit cards but now I am afraid that the credit card companies will whack my credit limit down and I use them to offset sporadic income. So while I know a lot of tuggers pay off their credit cards each month, if someone thinks that they may need a cash advance on a credit card or a HELOC in the next six months, I suggest you take it now as it may not be available later. Funtime
 
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