I was reading the Los Angeles Times to check out the current mortgages market. It turns out that with the slow real estate market, a lot of the top banks in the United States were affected as far as their price per share and earnings are concerned. Banks such as Bank of America, Washington Mutual, and Citi Group, which posted big gains during the real estate boom, are now reporting earnings loss and reduction of the price per share.

With the current slow down in real estate, I doubt that those cheap mortgages are still available. The sub prime loans are diminished and the banks are tightening their credit guidelines. For home buyers who had a sub prime loan that is ready to reset, they should refinance and convert their loans into a fixed rate one. Others can take advantage of the adverse credit remortgages.