Mortgage News You Can Use

Rate Watch - Mortgage applications ended their five-week decline last week, helped by a decline in interest

rates. Mortgage applications have slipped in recent weeks, hurt by the recent crisis in the subprime mortgage

sector, which has fueled concerns that lenders may clamp down in loans to borrowers with weak credit.

Borrowing costs on 30-year fixed-rate mortgages averaged 6.13%, down from 6.22% the previous week.

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The New Home Sales Report showed some strength. The Median Price nationwide rose 6.4% to $254,000

and the monthly inventory of new Homes fell to a 7.8 month level from last month's reading of 8.1 months.

The amount of new home sales units was 858,000, which was a little less than expectations. With Spring

now here, there could be some more strength in the upcoming months. In the Midwest, existing-home sales

dropped by 10.9% in March to a level of 1.39 million, and are 13.7% lower than a year ago. The median price

in the Midwest was $160,400, down 0.2% from March 2006.

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Buying foreclosures can make good financial sense, but it's not as easy as the "If I can do it, you can do it"

television infomercials would make it seem. "This is hard work," says Daryl White, a foreclosure investor in

Valencia, California. White uses a spreadsheet to figure the costs associated with investing in a particular

property. The goal, he says, is to buy at 30% below the after-repaired market value. Half of the discount allows

him to cover such expenses as holding costs and repairs, while the other half earns him a profit. The

formula is taught through Foreclosures.com, a foreclosure listing service. In the "changing market" White is

in, he has to factor in that houses are taking three to five months to sell, which adds to his holding costs, he

says. Never rely on appreciation to make a foreclosure deal work, White and others advise. Source: Market-

Watch

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Home Sweet Home-A single-family home went on the market for sale at $125 million early this month in Los

Angeles. The 45,000 square-foot home is owned by a 46-year old woman. Source: Wall Street Journal

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According to NAR: 45% of the first-time home buyers in 2006 purchased a home with no money down.

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Credit Tips of the Week-Pay your bills on time! I know it sounds too simple to mention, but some derogatory

information like late payments can haunt you for the next seven years from the date of the delinquency, none

of us can afford such an ugly specter lurking around on our reports.

Diversify the types of accounts you maintain. Make sure that your file reflects a well-rounded blend of credit

card, charge account, and installment loans. A diverse credit profile is read as healthier than a credit file constituted

primarily by only one type of credit extension.

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Answer: U.S. prices in 1940 were roughly the same as in 1800, so this is a fairly recent problem.

Question: What is inflation?

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Disclaimer: The information contained in this newsletter has been gleaned from various sources and is

intended to be current and accurate, however we cannot and do not warrant or guarantee as such. This

newsletter is for informational purposes only and is not intended to be, nor should be considered as,

investment advice. It does not take into consideration the financial circumstances, needs or investment

objectives of any specific person who may receive this newsletter. Individuals should seek financial advice

with regard to specific circumstances before making any investment decision.

©Copyright 2007-Ann Arbor Mortgage Company, LLC

©Copyright 2007 Ann Arbor Mortgage Company, LLC