Misleading Charts In The Media : Foreclosures Versus Home Prices

This is a chart from RealtyTrac's Q1 2008 Foreclosure Report. It is misleading. A common conclusion that people make from charts like this is that foreclosures are the cause of falling home prices. That's false. There may be a relationship...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

How The "Declining Markets" Designation Is The 2008 Equivalent Of 125% Home Loans

Using mash-up software, the graphic depicts Countrywide Home Loan's "declining markets" against a map of the country. The brighter the "spot", the more that housing values are expected to fall in that locale. It's no wonder that home appraisals are...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

The Graph That Shows Why New Home Sales Are At 17-Year Lows

In the last 24 hours, every business television program and newspaper has carried some variation of the "Home sales sink to 17-year low" headline. It's a negative-sounding headline and it ignores basic math and statistical analysis. First, the New Home...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

Bankrate.com Mortgage Trend Index (April 24, 2008)

I am a regular participant in the Bankrate.com Mortgage Rate Trend survey and this week's survey is now available. As a reminder: The survey is for conforming loans only. Asking "Where are rates headed?" is not strategy -- it's a...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

What International Buyers Need To Know About Today's Foreign National Mortgage Market

As the dollar slides against the world's currencies, foreign national buyers are flocking to U.S. housing market for second homes and investment properties. Looking at the graph, it's not hard to see why. Since September 2007, a European's cost to...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

What Aristotle Can Teach Us About Locking Mortgage Rates Instead Of Floating Them

Aristotle bestowed the gift of syllogism upon the world and thousands of years later, it is still believed to be the core of Western logical thought. A simple syllogism goes like this: Mortgage bond markets are unpredictable Morgage bond markets...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

HELOC Repossession : Why You Should Protect Your "Insurance Policy"

As home values stagnate around the country, mortgage lenders are actively trimming their exposure to home equity. Until recently, they've done it one of two ways: They eliminated no downpayment loans (except in rare circumstances) They capped second mortgages (i.e....

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

Beyond Home Mortgage Rates: What's In Store If You're Not Careful

Home mortgage rates may be at its lowest, good for borrowers seeking a practical mortgage solution to untangle some urgent money problems. But experts agree that if this is the reason for you to get a mortgage, it's not financially sound. There's more to the low mortgage rates than meets the eye.

Low Home Mortgage Rates

Never before in the annals of modern American economy have home mortgage rates been so low after a bonanza of loans made available to everybody, even those with spotted credit card scores. At that time, interests rates were considered low, but that was then and before the mortgage bubble burst. Today with the lowest of low home mortgage rates, what's in store for you?

Before you hitch your future to the mortgage wagon, carefully consider the following because you can't be too careful when your future is at stake and you have nowhere to run when the skies fall. Two important considerations play critical roles in your mortgage: credit score and stability of employment.

These factors will determine the success of your mortgage. There will be a lot of enticing talk about how low the mortgage rates are. You can still get a mortgage, even if you have a bad credit history, but at what price? If you compare notes with someone who has a good credit score, you might crumple at the disparity of the interest rates, and maybe you'll chuck the idea of getting a mortgage.

Another factor is the stability of your employment. Let's say you've got a good credit score and you get a mortgage. But if your employment is not that stable, or you're hired on a contractual basis, you'll put yourself at risk. Despite the much touted low home mortgage rates, if these two factors are quite shaky, better study other options and evaluate the feasibility of your having a successful home mortgage.

Better the Bitter Pill Now

Many borrowers breezed through their loan applications, believing in their capabilities to pay the mortgage, despite the jacked up interest rates owing to their poor credit scores. Yet they continued to sign the dotted line, encouraged by the fact that everybody was getting mortgages and lenders were so eager to lend their money.

If you have bad credit history but a stable employment, assess your chances for future salary raises, and calculate how much you earn from other part-time jobs to keep the family afloat during the lifetime of the mortgage. Or, if you have an unstable job and a bad credit score, don't push it. What makes the situation even shakier is the fact that you'll be giving a downpayment, which you may have saved or borrowed for the occasion.

So you thought that getting a mortgage was a breeze especially with low home mortgage rates? There are the downpayment, insurance, and processing fees to pay. With all these expenses, where will it leave you when the bills start coming? Better a broken heart now than be sorry and bankrupt later.

Be Wise and Wide-Eyed

Okay, you still want a mortgage at this time. This is one question you've got answer honestly, are you getting a mortgage to pay off credit card loans? If it's a yes, then here's what will happen - you'll be paying more than you can afford. With prices of food going up, what would be your priority?

Instead of capitalizing on low home mortgage rates, try to plead with the credit companies to reconstruct your credit payment. At least, they can't foreclose your home when worse comes to worse.

Read More...

[Source: Loan Mortgages]

Vacation Alert: April 16-18, 2008

I'll be on vacation through the weekend. Until then, enjoy this 6 minutes of comedy bliss.

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

Bankrate.com Mortgage Trend Index (April 10, 2008)

I am a regular participant in the Bankrate.com Mortgage Rate Trend survey and this week's survey is now available. As a reminder: The survey is for conforming loans only. Asking "Where are rates headed?" is not a mortgage strategy --...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

Bankrate.com Mortgage Trend Index (March 13, 2008)

I am a regular participant in the Bankrate.com Mortgage Rate Trend survey and this week's survey is now available. As a reminder: The survey is for conforming loans only Your mortgage strategy should consist of something more than just asking...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

Why A Do-It-Yourself Divorce Requires Professional Mortgage Advice

A homeowner recently divorced and the divorce was amicable. There were no divorce attorneys, no bitter squabbles, and no judge's decree. More importantly, there were no legal battles or expensive litigation. The split was well-crafted by the two parties and...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

REQUEST FOR HELP : Volunteers Wanted To Test New Mortgage Process

This isn't me farming for new business I have a business problem to solve and need a controlled environment in which to execute. I want to apply a specific technology to my mortgage practice and I expect it to dramatically...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

How Fannie And Freddie Are Making Remortgages Cost-Prohibitive

Mortgage rates have been trending lower for the last months or so. Unfortunately, most people can't take advantage -- government-sponsored mortgage financiers have added mandatory mortgage fees that negate the discount. It's like buying an item on sale, but having...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

Uncommon Times Call For Uncommon Measures : The Many Tools In The Federal Reserve's Toolbox

While former Fed Chairman Alan Greenspan goes to the press in defense of his reputation, the Wall Street Journal's Greg Ip gets practical, talking about the Federal Reserve's options as the current credit crunch deepens. Cut the Fed Funds Rate?...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

What "The Mortgage Reports Jinx" Teaches Us About Being "Mortgage Decision-Ready"

There's a myth legend in certain circles called the Sports Illustrated Cover Jinx. It goes like this: You're a story worth covering Sports Illustrated makes you its cover story The jinx begins and you fall from grace If you're under...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

How Far Will The Fed Funds Rate And Prime Rate Fall In April?

This graphic charts how think the Federal Open Market Committee will change the Fed Funds Rate at its two-day meeting starting April 29. Here's how to follow along:

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

Bankrate.com Mortgage Trend Index (March 20, 2008)

I am a regular participant in the Bankrate.com Mortgage Rate Trend survey and this week's survey is now available. As a reminder: The survey is for conforming loans only. Your mortgage strategy should be broader than just asking "Where are...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

It Takes 18.5 Years To Pay More Principal Than Interest With An Amortizing Mortgage

During the first few years with an amortizing home loan (i.e. principal + interest), homeowners often feel like their entire monthly payment is going towards interest. Well, not all of it goes towards interest, the graph tells us. Just most...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

Business As Usual : March 24-28, 2008

Hi, everyone. I am on sort-of-vacation this week with my family and am working reduced hours. Here's what to expect from me and my team this week: Yes, we're still doing mortgage planning for new clients Yes, we're still adopting...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

Blog Dot Blog : .blog Domain Names For Bloggers

Author's Note: The Mortgage Reports is a consumer-focused mortgage blog, but many of my readers are mortgage and/or real estate bloggers. This post is for the industry folks. In addition to writing The Mortgage Reports each day, I write content...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

The FOMC Press Release Holds The Keys For Where Mortgage Rates Will Go

When the Federal Reserve lowers the Fed Funds Rate, mortgage rates tend to increase, and it's always for the same, few, related reasons: Rate cuts create long-term inflation pressures Rate cuts makes the U.S. dollar get weaker Rate cuts reflect...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

Fannie Mae's Loan-Level Pricing Adjustment Chart

You keep hearing (and watching) me say that mortgage rates are down, but that not everyone is eligible for the lower rates. This chart should help clarify. To read it, just find the intersection of your credit score and loan-to-value....

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

Parsing the Fed (March 18, 2008 Edition)

The Federal Open Market Committee lowered the Fed Funds Rate to 2.250 percent Tuesday while leaving the door open for future rate cuts. Stock markets cheered the Fed's move; the Dow Jones Industrial Average rallied 400 points in the wake...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

Bankrate.com Mortgage Trend Index (April 03, 2008)

I am a regular participant in the Bankrate.com Mortgage Rate Trend survey and this week's survey is now available. As a reminder: The survey is for conforming loans only. Asking "Where are rates headed?" is not a mortgage strategy --...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]

How Fed Funds Rate Cuts Lead To Inflation And Higher Mortgage Rates

The Federal Reserve is expected to lower the Fed Funds Rate Tuesday and that should cause mortgage rates to move higher. This is a counter-intuitive relationship for most people because when they hear that the Fed is "lowering rates", they...

Read the full post at http://www.themortgagereports.com

Read More...

[Source: The Mortgage Reports Blog]