Foreclosures Are Up , Surprise, Surprise
May 13, 2009 by admin · Leave a Comment
From the I hope you are not surprised section of the financial news a report surfaced today that “The number of U.S. households faced with losing their homes to foreclosure jumped 32 percent in April compared with the same month last year, with Nevada, Florida and California showing the highest rates. More than 342,000 households received at least one foreclosure-related notice in April, RealtyTrac Inc. said.”
As Gomer used to say “surprise, surprise, surprise!” No not really, it is going to get worse, lots worse before it gets better, unless of course you listen to our leaders in Washington. President Barack Obama’s administration announced a plan in March to provide $75 billion in incentive payments for the mortgage industry to modify loans to help up to 9 million borrowers avoid foreclosure. Good news right? Boy oh boy the media loves to love Obama.
Mortgage lenders and the mortgage industry are idiot proof. The United States Government is seeing to that. Make bad loans?, no problem here is a few billion to fix it.
When and if our government decides to let it break rather than bailout private industry after private industry, then we have a chance at a changes occurring.
America cannot go on living, borrowing and spending like it never needs to be paid back. Unless of course you are big business, then you get a free pass. I am a Republican , I love business, but everyone needs to be accountable, everyone.
Our economy is in a reset mode and we need to let it reset. This past November I lost a home of 18 years to foreclosure. I did not seek help from the government nor anyone else. The mortgage company did not want to modify my loan , discount the interest rate or anything like that. I lost it and I take responsibility for that I just wish our leaders and corporate bigwigs would be so accountable
Low Mortgage Rates With Big Time Costs
March 23, 2009 by admin · Leave a Comment
Just because a mortgage rate is low does not mean that the story ends there. According to Amy Bohutinsky, vice president of communications for Zillow.com, mortgage rates are low right now but lending standards are such that even those with excellent credit must adhere to very strict guidelines.
New rules have recently been put into place by Fannie Mae and Freddie Mac whereby borrower’s fees are very high for individuals who have less than perfect credit. Lenders are trying to decrease the risks that they have to take on because of the uncertain market. Regardless of whether your credit is excellent, poor or in between, you can expect to pay more points (or prepaid interest), however the lowest refinance mortgage rates will always go to the persons with the best credit score
Pricing is on a risk-based system. Fees are added to mortgages based on credit scores. If you want to avoid paying exorbitant fees then you would be well advised to have a FICO score of 740, or higher if possible. These new rules take effect in April, according to Dan Green, a loan officer with Mobium Mortgage in Cincinnati, Ohio. However these new rules began being incorporated into rate sheets back in January.
Loan level price adjustments are new fees that are not making too many homeowners in search of low interest rates very happy. Prices vary from one consumer to another. For example you could be paying interest rates that are one or two percent higher than what a family member or friend is paying. Extra charges are likely whether you are buying a house or a condo. So how do you find the best mortgage rates ?
Paying Points
As reported by Freddie Mac’s weekly rate survey, in January 2009 the average rate on a 30 year fixed rate conforming mortgage was 5.05 percent. In order to get this rate your payment would need to be approximately 0.7 points. In 2008, 0.4 points would be required in order to get an interest rate of 5.76 percent.
Be aware that an inverse relationship exists between a rate and points. In other words, the more points that you are expected to pay, the lower will your rate drop. Of the amount paid on the mortgage, there is a one percent point that is then charged as prepaid interest.
Before you begin paying points take the time to consider the ramifications for yourself. Is it worth it to refinance ? Would it be a wiser move to pay no points but to have a higher interest rate on your mortgage? Consider how long you are thinking of living in the residence in question. You also need to consider how much time you will need to pay off the points. The concept of paying points makes more sense the longer you plan to reside in a particular house.
Added Fees
Borrowers can expect to pay higher fees in regards to underwriting and processing, which can range from $300 to $400 or higher. An appraisal fee for a refinance can set you back in the area of $300 or more. To save yourself money, use the same title insurance firm that you use when you first got your mortgage. Mortgage fees will likely cost you approximately three percent of the total of the mortgage loan.
Unemployment Expected To Reach 8 Percent
November 23, 2008 by admin · Leave a Comment
According to the statistics recently released unemployment shows no signs of slowing down in fact it is strengthening its grasp on working Americans. In data released Friday by the Bureau of Labor Statistics, 12 states, including Florida, Idaho, North Carolina and Illinois, reported a rise of at least two percentage points in unemployment rates over the past year. That is significant.
The downturn in rates applies to all industries. The current rate of 6.5 % nationwide is expected to swell to 8% in the coming months, according to economy experts. So who is hiring in this type of economy?
Health Care Careers, educational services and retail lead the way. The retail trade is spurred on by the holiday season. Health and education are natural by products of the times. More and more people will continue to change careers and health care never seems to have enough workers.
President Bush signed legislation for unemployment benefits , but that will serve as a temporary fix. We are in trouble economically and it seems it will get worse before it gets better.
Let The Democratic Games Begin
November 10, 2008 by admin · Leave a Comment
So it seems we need yet another 100 Billion in stimulus for the economy. However not before the Democrats try to add some social tweaking . According to CongressDaily ($), House Democrats are planning to include “federal matching funds for state Medicaid programs, an extension of unemployment benefits, expanded food stamp spending and money for infrastructure projects” in their new economic stimulus package.
These kinds of things will be a matter of course after january 20. Lets just keep spreading that wealth around
Market Continues Downward Slide , Got Cash ?
November 9, 2008 by admin · Leave a Comment
Investors all over the globe are losing money. Financial markets are trending down from Japan to New York with no end in site. The bottom seems a little further down than it did last month. This downturn has had some significant down days, some record down days, but mostly seems to be sliding downward over time. Mortgages are defaulting everyday. Should You Invest In Foreclosures ? The classic tracks of a bear market.
This has not stopped investors from investing, albeit with a different strategy. Investors generally flock to money markets, beginners investing in annuities, Bonds or CD’s. Herein lies a problem for investors used to double-digit returns and accumulating wealth.
Rather than looking for stocks, the search is on for the Best CD rates or the highest CD Rates, the best annuity rates and anything else where money can be invested safely and without risk to investment capital. Preservation of capital is job one!
This market will turn around. It always does, but this bear will be walking for while. One thing for sure, as soon as it does investors will jump back into stocks with both feet, until them , cash is king.