Real estate blog entries tagged with yield

Blog entries tagged with "yield":

yield: Comments from FNMA on Mortgage Rates 03/12/08 - 03/12/08 03:25 PM

These are FNMA's comments from an executive in Capital Markets on the selloff in MBS.
The Capital Markets Sales Desk has fielded a large number of calls from customers simply asking, what's going on? Why is the mortgage market trading lower every day? The following are reasons that could help explain why mortgages … (5 comments)

yield: Mortgage Pricing Is Out of Whack! - 03/10/08 10:38 PM

This was a devastating day for the stock markets, so I expected to see the rate (yield) on the 10 year bond fall. I wasn't disappointed. Take a look at where the market ended the day, courtesy of Bloomberg.
I'm going to pick on one of my favorite lenders, SunTrust, although every … (17 comments)

yield: Interest Rates and the Pure Expectations Theory - 02/27/08 08:27 PM

(WARNING: this article is long and detailed, and ends with a lot of math. If you want something short and mathless, please visit my article about cell phone plans getting cheaper.)
Last night, I lectured my Introduction to Financial Services class regarding several topics, one of which was the relationship between current and … (0 comments)

yield: Gross Rent Multiplier - GRM - 12/07/07 01:57 PM

I recently sent out a spread sheet designed by someone else ... that had a formula on GRM.
While it is one of many ways to begin due diligence on an potential investment property, I prefer to use a simpler method. I like to calculate using "The 10% rule".
I divide potential annual rent … (2 comments)

yield: Lets grow a money tree! - 10/09/07 10:02 AM

Let's plant two "money trees" and watch their growth. We'll plant the first by placing $20,000 in a savings account earning 5% interest, and leave it there for five years. After five years, we'll withdraw our initial investment ($20,000) plus the interest ($5,525). We invested $20,000 and received back $25,525, a … (0 comments)

yield: Why Mortgage Rates Improve when there is Bad Economic News (& Vice Versa). - 09/07/07 02:14 PM

Ok - Here's the question of the day (week/month/year). Why do Mortgage Rates rise or fall depending on the current economic news?
Hopefully this will answer that in a clear and concise manner.
Mortgage rates are based on mortgage backed securities or bonds. When good economic news is released - 150,000 jobs … (2 comments)

yield: ARM's are on their way back - 07/02/07 09:36 AM

I'm going to take a moment to get technical and talk about the yield curve on US Government bonds, bills and notes; specifically, I'm going to address what an inverted yield curve is and why it's important to you.The yield curve is a graph that plots yields (that's an interest-rate adjusted … (1 comments)

yield: Understanding mortgage rates: fixed rate loans - 06/15/07 03:56 PM

(This article is the first of a three-part series on understanding different types of mortgage interest rates.)To understand interest rates in long-term fixed rate loans, the first thing to do is tune out the media noise around the Fed and the Prime Rate. Long-term mortgage interest rates are based on the … (2 comments)

yield: 10 Year Treasury Chart Update - May 16th - Down day not necessarily good! - 05/16/07 04:01 PM

One might think that a down day for yields is a good thing and generally speaking it is. But I'm a little troubled by today's chart. Here it is:
Take a look at today all the way on the right of the chart. What do you see? Another white candlestick slightly … (4 comments)

yield: 10 Year Treasury - May 15th - Reversal of Fortune (maybe) - 05/15/07 05:22 PM

Sorry I wasn't around to post yesterday. Summer's seem to get busier every year of my life. These things happen. Doesn't really feel like all that long ago that my summers were spent hanging out with friends, going swimming or playing ball. Enough of my trip down memory lane. Here's the … (0 comments)

yield: The wrong mortgage can cost thousands of dollars in needless fees, interest and other costs - 05/08/07 05:17 PM

The wrong mortgage can cost thousands of dollars in needless fees, interest and other costs.Many lenders have a handful of loan types that they use with almost all of their customers. You may qualify for special programs, but never hear of them. Many lenders use the loans that are most similar … (2 comments)

yield: Paying Discount Points On a Loan - 05/01/07 11:16 PM

As a broker on the CCIM track and personal investor, I can't stand the concept of buying points on a loan. Loan points are prepaid interest where you're paying interest upfront in exchange for a lower rate on the loan. If the loan has a 30 year amortization period and the … (3 comments)

yield: The Treasury Chart - April 24th. - 04/24/07 09:40 AM

I was pretty certain in the premarket today that we'd get a confirmation of yesterday's starting down trend on the 10 year treasury index. As always, lower yields = lower rates. It may have something to do with the news that came out from NAR (in fact, I'm sure it does) … (0 comments)