Archive for December, 2008
How To Shop For Mortgages In A “Vacation Week”
Mortgage markets are like any other market — in order for goods to change hands, a buyer and a seller must first reach an agreement to “trade” at a specific price point.
In general, the more buyers and sellers there are for a particular item, the easier it is to find that “fair value” and make [...]
Mortgage Markets In Review : December 29, 2008
In a week defined by low volume and lack of conviction, mortgage markets idled ahead of the holiday last week. Friday’s post-holiday action was even slower.
After falling for two consecutive weeks, mortgage rates held flat last week.
It’s somewhat surprising that mortgage rates didn’t rise considering the flow of negative economic news last week:
Joblessness appears to be [...]
Read More..>>A Great Combination : Too Many Homes For Sale And Low Mortgage Rates
For the first time in over a year, the sales of “used homes” fell below the 5-million unit trendline, helping to push the total home inventory higher by 0.1 percent nationwide.
Based on the rate at which homes are selling nationwide, it would take 11.2 months for the existing housing supply to be exhausted.
For home buyers, [...]
Mortgage Markets In Review : December 22, 2008
Mortgage markets improved last week for the second week in row. After the Federal Reserve said it would use “all available tools” to stimulate the economy, traders responded by driving mortgage rates to 50-year lows.
It didn’t last long, however.
After bottoming out early-Wednesday morning, mortgage rates trended higher all the way into Friday’s closing. It was the third [...]
Mortgage Markets In Review : December 15, 2008
Mortgage markets improved last week, riding a steady stream of negative news into its best levels of the year.
Day-to-day, mortgage rates priced across a very wide range, but managed to close out the week lower overall.
Mortgage rates improving on “bad news” is a break from the trading patterns of September and October. Back then, [...]
Simple Real Estate Definitions : Refinance
A mortgage is a contract between a bank and borrower, defining the terms by which a home loan must be repaid.
The paperwork, signed by both parties, includes provisions for things like:
The interest rate
The length of the loan
The amount of money to be borrowed
But, like all loans, a mortgage loan can be paid off at [...]
Conforming Fixed Rate Mortgages Are Now Priced Better Than Comparable ARMs
It’s the age-old question for home buyers in need of a mortgage:
Which is better: Fixed or ARM?
Historically, the answer has hinged on a homebuyer’s desire to meet one of two mutually-exclusive mortgage financing goals:
Get low mortgage payments for better cash flow
Get long-term payment stability for better budget planning
But because of government intervention and lingering questions about [...]
Get Extra Tax Deductions In 2008 — Pay Your Mortgage A Few Days Early
For most Americans, mortgage interest paid on a home loan is tax-deductible in the year in which it was paid.
With advance planning, therefore, homeowners can increase their 2008 tax deductions and limit their tax liability on April 15.
The key is to make the January 2009 mortgage payment before the New Year begins.
In making the payment in [...]
What It Means When More Than Half Of The Delinquent Homeowners Go Delinquent Again
Earlier this year and under pressure from the government, mortgage lenders made more than 200,000 loan modifications to delinquent homeowners.
The modifications came in one of three forms, or a combination:
Interest rate reduction
Loan term extension
Principal forgiveness
But despite the modifications, as of October 1, more than half of the homeowners that received assistance were already two months [...]
Mortgage Markets In Review : December 8, 2008
In a week in which mortgage markets struggled to find direction, mortgage rates edged higher overall. The weekly increase was the first since mid-November and it may signal higher rates as we head into 2009.
The week’s most talked-about story hit the wires Friday.
According to the government, the U.S. economy shed 533,000 jobs last month and [...]
