mortgage minneapolis: Fed Cuts Discount Rate to 5.75% - 08/17/07 04:09 AM
The Federal Reserve Board said it was acting to "promote the restoration of orderly conditions in financial markets" by allowing banks to borrow unlimited funds at 5.75% for 30 days.  The discount rate which is the rate that the Federal Reserve charges qualified lenders, mainly banks, does not affect credit cards, home equity lines of credit, car loans and other consumer loan rates.
By cutting the discount rate instead of the federal funds rate, the Fed signaled that it believes problems lay mainly to the financial system.  The cut in the discount rate does little to change consumer and commercial interest rates, … (0 comments)

mortgage minneapolis: Understanding Mortgage Points - 08/13/07 12:22 PM
Looking for a way to lower the interest rate on your home mortgage?
Buying points may or may not work to your advantage.  Here are a couple of questions to ask yourself before making a final decision.
 
•·         What is a Point?
A point is a sum paid to the mortgage lender at the closing table in order to lower your interest rate.  A point represents 1% of the total loan amount, so for a $100,000 loan 1 point would equal $1,000.  A point can usually reduce your interest rate anywhere from 0.125% to 0.25%.
 
•·         How long will you keep your loan?
In order to … (0 comments)

mortgage minneapolis: Mortgage Minneapolis - 08/13/07 11:28 AM
Obtaining a mortgage in Minneapolis has become more difficult over the past few months with the news of lenders closing their doors and filing for bankruptcy.   With mortgage alternatives diminishing by the day, many local mortgage companies in Minneapolis are also closing their doors.  As a consumer, where does this leave you when it comes time to obtain financing for a home purchase or refinance?
The new changes in the mortgage laws in Minnesota have left many consumers in a bitter-sweet position.  For the most part, the mortgage brokers that are left in Minneapolis are the professionals who call this industry their … (0 comments)

mortgage minneapolis: Mortgage Rate Forecast for the Week of August 13th, 2007 - 08/12/07 03:08 PM
Just in case you were worried the week ahead wouldn't hold enough action and excitement, this week sizzles with economic news events. The calendar holds Retail Sales on Monday; the Producer Price Index, measuring wholesale inflation on Tuesday; the Consumer Price Index, measuring consumer inflation on Wednesday; Housing Starts and Building Permits on Thursday; and Consumer Confidence on Friday.
If the economic news shows low inflation and a slowing economy, Bond prices and home loan rates should improve - on conforming loans.
But remember that in the current climate, non-conforming loans are a different animal altogether. If you are in the market … (0 comments)

mortgage minneapolis: Minnesota Mortgage Law - 07/31/07 10:15 AM
Minneapolis, MN  - On Monday July 30th the Minnesota Mortgage Association held it's monthly meeting to discuss how the new mortgage laws passed in Minnesota will affect how mortgage companies within the state operate.  The panel of speakers included, but not limited to, Wade Abed of Northwest Mortgage also the President of the Minnesota Mortgage Association, Robyn Brown of the Department of Commerce, Eldon Spencer representing legal counsel and Pat Martin. 
Minnesota mortgage brokers have been under scrutiny for the latest increase in foreclosures.  This has lead up to the state of Minnesota passing new laws designed to eliminate some of … (2 comments)