Where are Interest Rates Heading? - 06/30/08 09:00 PM
Mortgage rates improved last week, marking the first time since mid-May that has happened.
The rate drop is the result of how mortgage markets interpreted the Federal Reserve's Wednesday press release.
In it, the Fed said:
Inflation pressures should lessen soon
Growth should remain steady this year
The credit market is … (3 comments)
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What To Do When Your HELOC Is Reduced By The Bank - 06/27/08 04:30 PM
A Home Equity Line of Credit is bank product that grants homeowners access to the equity in their home at anytime, usually using checks.
Often called a HELOC, these equity-based credit lines function very much like credit cards:
The rate is adjustable, tied to Prime Rate
There is a minimum monthly payment … (3 comments)
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Making English Out Of Fed-Speak (June 2008 Edition) - 06/25/08 03:30 PM
The Federal Open Market Committee left the Fed Funds Rate unchanged at 2.000 percent this afternoon, as expected.
In its press release, the Federal Reserve noted the co-existence of inflation and recession.
On inflation, the Fed said that energy and food prices are contributing to an "elevated state" … (1 comments)
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Simple Real Estate Definitions: PITI - 06/24/08 11:15 AM
Most homeowners make four housing-related payments each month:
Principal on a mortgage
Interest on a mortgage
Taxes on the real estate owned
Insurance for the real estate owned
Collectively, these payments are known by the acronym PITI but don't let it fool you -- a homeowner's monthly expenses are still called PITI … (3 comments)
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Looking Back And Looking Ahead : June 23, 2008 - 06/23/08 08:20 PM
Mortgage rates edged higher for the fifth straight week and the benchmark 30-year fixed-rate mortgage is now at a 10-month high.
One reason why rates are spiking is because the temporary jolt from higher energy and food costs is starting to look like a longer-term trend.
For example, high energy prices get a … (2 comments)
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The Midwest Flooding And Its Impact On Your Mortgage Loan - 06/20/08 06:52 PM
Flooding in the Midwest has displaced thousands of families and caused billions of dollars in damages.
It may also cause mortgage rates to rise.
As the extent of the damage becomes more clear, prices for grain and livestock are soaring. For example, a host of dietary staples are suddenly more expensive … (1 comments)
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What You Need To Know About Mortgage Loan Rate Quotes - 06/19/08 02:23 PM
Home buyers are often surprised when a "rate quote" from the morning won't be honored in the afternoon. Sometimes, the assumption is that the loan officer is just being sneaky.
This couldn't be less true.
Rate quotes change in the middle of the day because mortgage markets are in constant flux. All … (1 comments)
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Why Home Values May Rise When Home Building Falls To A 17-Year Low! - 06/18/08 02:14 PM
A "Housing Start" is a new home on which construction has commenced and in May, Housing Starts fell to a 17-year low nationally.
At first glance, this may seem like a negative for the already-battered U.S. housing market.
It's not.
Falling Housing Starts reflects the broader real estate market … (0 comments)
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If That Home Is A "Good Buy", Make Your Offer Quickly - 06/17/08 02:05 PM
Each month, University of Michigan researcher survey the U.S. population about their thoughts on the economy -- is it improving, it is worsening, is it staying the same.
May's consumer confidence survey registered it's lowest reading since 1980.
Given the recent headlines, that shouldn't be surprising:
Unemployment is spiking
Gas prices … (3 comments)
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Looking Back And Looking Ahead : June 16, 2008 - 06/16/08 03:38 PM
Mortgage rates moved higher last week on lingering concerns about inflation, the fourth straight week in which rates rose.
Mortgage rates are now as high as they've been since October 2007.
Because inflation devalues mortgage bonds, market players are quick to unload them when signs of inflation are present.
Last week, there were … (0 comments)
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Guess Which 4 States Accounted For More Than 50 Percent Of May 2008 Foreclosures - 06/13/08 03:39 PM
RealtyTrac released its most recent foreclosure statistics and if you only read the headlines, you think the entire country was on the verge of losing its homes.
The underlying data tells a different story, however.
More than half of the country's foreclosure activity in May 2008 was tied to just 4 states in … (1 comments)
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Cancel Your PMI Before It's Too Late To Cancel It - 06/12/08 10:12 PM
When homeowners borrow more than 80 percent of a home's value, mortgage lenders often require a corresponding insurance policy called Private Mortgage Insurance.
PMI provides a cash payment to lenders in the event of a homeowner defaults.
But because PMI policies are designed for high LTV loans only, they usually contain cancellation options for … (2 comments)
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Is The Federal Reserve Telegraphing Its Next Rate Hike? - 06/11/08 12:57 PM
The Federal Reserve is stumping hard on inflation this week, creating speculation that Fed Funds Rate hikes may be in store for later this month.
This is a counter-intuitive development because increases to the Fed Funds Rate are typically associated with periods of rapid economic expansion.
Lately, we've seen anything … (4 comments)
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Why Your "Dear Seller" Letter May Be Met With A "Dear John" - 06/10/08 07:18 PM
Several years ago, when homes sometimes sold within hours, prospective buyers often drafted "Dear Seller" letters, an accompanying personal note to help purchase offers stand out in a multiple-bid situation.
Today, some buyers are writing a different kind of letter to win a seller's favor -- a letter explaining why the … (2 comments)
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There was no rest for the mortgage loan rates weary last week. - 06/10/08 02:14 AM
As mortgage bonds sold off early in the week, sharp rate hikes followed. A steady stream of better-than-expected economic reports had re-ignited inflation fears, drawing money from the bond market.
On Friday, however, the money flow reversed on a triple threat to the U.S. economy:
The Unemployment Rate took its biggest … (2 comments)
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Why It's Good News For Home Buyers When Unemployment Rates Surge - 06/06/08 11:29 AM
On the first Friday of every month, the Bureau of Labor Statistics releases its Non-Farm Payrolls report.
More commonly called the "jobs report", today's 2-page analysis of May 2008 shows that the economy shed jobs and that unemployment surged.
This is terrific news for home affordability.
That may sound counter-intuitive, so let's dig … (0 comments)
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What Happens When Bernanke Says "Inflation" 55 Times In 5 Pages Of Text - 06/05/08 01:53 PM
Mortgage rates are a big deal when you're buying a home.
With even the slighest uptick in rates, 30 years of mortgage payments can get substantially more expensive and one of the most substantial threats to mortgage rates is an economic event called inflation.
Inflation's influence on mortgage rates is … (7 comments)
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The Proper Way To Give And Receive Gifts For Downpayments - 06/04/08 02:01 PM
When a home buyer is gifted cash for a downpayment, there is a right way and a wrong way to receive the funds.
The right way includes:
Completing an acceptable gift letter
Documenting the withdrawal of funds with receipts
Documenting the deposit of funds with receipts
The wrong way is to ignore … (1 comments)
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Did You Know : The Lifespan Of A Mortgage Loan Approval? - 06/03/08 09:59 PM
Mortgage Loan approvals don't last forever.
A conforming mortgage loan approval from Fannie Mae or Freddie Mac has a shelf-life of 120 days.
After 120 days, the approval expires and a mortgage applicant must re-submit his application for consideration.
In addition, a mortgage loan approval can "expire" within the 120-day period … (1 comments)
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Looking Back And Looking Ahead : June 2, 2008 - 06/02/08 05:04 PM
Mortgage rates rocketed higher last week, stunning active home buyers and mortgage rate shoppers.
Some conforming mortgage rates rose by as much as three-quarters of a percent before Friday's closing.
Even in a year in which mortgage rates have been extremely volatile, last week's spike was a large one.
The … (1 comments)
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The Impact Of Falling Oil Prices On Mortgage Rates - 06/01/08 10:41 PM
Falling oil prices is one reason why mortgage rates are dropping for the first time in 6 days.
Oil is off $9 per barrel from last week, a shift that correlates to $0.23 per gallon of unleaded gas, roughly.
This drop is good news for both home buyers and … (5 comments)
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