Although it may seem that the interest rate on home mortgage prices are tied to the Fed’s announcements of lower interest rates, they really aren’t directly affected. The announcement can have an influence on these rates by allowing banks to borrow money from the Federal Reserve at a discounted rate. This savings may or may not be passed onto mortgage loan products, depending on the economic climate and what rate your mortgage product happens to be tied to initially. However, due to the loss of confidence in the housing sector, demand for home mortgage products has declined. This has more of a direct effect on the interest rate offered as banks compete to attract borrowers to their table. If the demand is high, you may end up seeing the reverse dynamic where the interest rate on home mortgage products can increase. Read more…

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If you are buying a house with money that you intend to borrow from a bank or a lending company, there are some key questions that you have to ask yourself, (and provide frank, honest answers for), before signing that bank loan agreement. Read more…

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An estimated 2.2 million families have faced foreclosure and there are plenty more to follow. The sub prime loan bust, which is the result of lenient lending to those with less than perfect credit and little to no money down, has caused uproar in the financial industry. In fact, Experian, an Ireland based credit reporting bureau, has recently reported that because many people are facing foreclosure, instead of keeping up with their mortgage payments to hold on to their homes, they are instead paying on their credit cards. Read more…

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It’s no secret to most of the country that California has some of the highest property values. It’s not uncommon to see a home that would go for $100,000 in Texas go for $500,000 or more in California, particularly around the larger cities of Los Angeles, San Diego and San Francisco. There are many causes for the high property values in California, but due to reckless lending in the state, it is estimated that three million LA County homeowners will lose approximately $30 billion in property value. Why? Because foreclosures are hitting the state hard and it is estimated that the neighbors of foreclosed homes lose $8,000 in value each time another homeowner can’t afford their mortgage. Foreclosures are occurring in California in rapid numbers and the majority of these are due to the fact that the subprime mortgage industry has led to more people owning homes that they simply cannot afford and this is magnified in California to a greater degree because of the cost of real estate to start with. It is estimated that nearly 500,000 people in California will lose or have already lost their homes. Read more…

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Everyone tries to keep their credit report looking as good as they can so they will have a better chance at qualifying for a mortgage. This is a good idea because the lending companies use your credit report to determine your credit score, and the higher your credit score is, the better the mortgage rate you will be able to get. Read more…

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Owning a house is an American dream, and let’s face it; we all need a place to stay and call home. How about buying or renting a house? Buying a house is not just an investment, it is a personal commitment. With the recent turmoil in the housing market, people are again weighing the pros and cons of owning a home.

There are many elements to consider when deciding whether to rent or buy a home. Buying a home is a very good long term investment. While short term appreciation will be negligible, as mortgage payments usually go to paying for the interest rather than repaying the loan, long term price appreciation is certain.

Home owners usually tell renters that they are “throwing away their money” or “pouring money down the drain”. While this advice usually encourages people to borrow heavily so they can get on the property ladder, is this advice still sound? Read more…

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Sub prime loans have bust, people are losing their homes. Families and the mortgage industry alike are not happy as the statistics run the news of how the lenient lending that has been granted over the past few years has crashed and burned. The truth is that foreclosure rates are raising and there is no slowing in sight. Read more…

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When applying for mortgage loans it is imperative that you give some thought to whether you would benefit most from fixed interest rate loans or adjustable rate mortgage loans. Each type of loan does offer its own set of benefits as well as drawbacks so it is important that you give careful consideration to which type of loan would most benefit you before you make a decision.

While it is possible that you may be able to refinance your loan later if you make the wrong decision, this can be a costly process so it is important to think about it earlier rather than later. Read more…

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The rise of subprime lending was good for homeowners that could not otherwise afford to get a house. However, the rise of interest rates and the subsequent shift of the monthly payment left many homeowners with sticker shock. Add to that a medical or job loss emergency, a weakening housing market and that may be the reason 1.2 million Americans experienced foreclosure in 2006. What can you do if you find yourself in that situation? Read more…

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We’re always hearing about the high rise in foreclosures, but rarely do we get a state by state look. A recent report has given some numbers that tell all about what the Ohio is going through with their high rise in defaults. In the past four months alone, Ohio has seen a ten percent increase in foreclosures which means that Ohio takes the lead for the highest number of foreclosures out of all of the states in the United States. Read more…

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