Life in the Fast Lane of Home Ownership

Foreclosures are on the rise even though the economy is still strong. This is because of all the mortgages made to borrowers that bought more house than they could keep up with and they took out a Arm product that let them into a large debt load. Most of the borrowers figured things would continue booming in the housing market and they would be in great shape in a couple of years. Now many of these loans are higher than the value of their home. Now just imagine what will happen if the economy turns down a little more. Can you see the bigger picture ahead for the mortgage industry? Look at this article on how some Investors are trying to solve future problems. Be careful you do not get caught in this trap. www.rateinformer.com

The Many Aches and Pains of the housing market

As we watch the first month of the new year unfold the housing market is facing a lot or very serious issues. Look at the reports around the country in Mass.. Then look at New York. Check out the Colorado area. Here in SW Florida things are getting tough as you look at the foreclosures on this site and then click on pre-foreclosures on the site and see the huge increase coming up.These are real life figures that are starting to pop up around the country. Almost every week now the big Investors are sending out updates and raising the cost of programs such as Stated Income Loans, Interest Only Loans, No Doc Loans Etc. as these types of loans become more and more of a problem with their portfolio of servicing. The days of anyone getting a mortgage as long as they are breathing are numbered. We very well could and probably will see some serious bank problems with the banks that have been doing so much of the "junk" loans. In Florida many of the loans that were done in the past year are now 100 LTV and higher because of drops in housing prices. The banks are holding a lot of loans where the house is worth LESS than the mortgage. That is a sign of sure trouble and believe me they are getting very nervous. If you are looking for a home make sure you do not overpay in the area you are in. Check very RECENT sales not ones that are a few months old. Make sure the real estate agent show you New sales. Mortgage Brokers are hungry so shop around and find one that will be fair to you. www.rateinformer.com

Looking for a New Home? Pleasure or Pain?

There is a nice home being built for sale in this article. Now if you put 5% down your mortgage payment for a 6.125% 30 year loan would be only $894,706 per month. We wonder what the taxes and insurance would be? Put your name on the list now before it is sold! New Home sales were reported up today but there is still a lot of inventory available in most areas (but not all) of the country. There is a lot of talk that the housing market is coming back around. The economy will have a lot to do with giving us a fuller picture. The Feds will meet next week to decide on what to do about interest rates. The road to home ownership can be a very rough road full of potholes but this does not have to be the case. Make that road smooth by filling in the potholes with knowledge you gain before buying a home. Research the area you want to buy in for bad neighbors, new incoming projects etc. Make sure the price is in line with the area. You do not want to most expensive home in the area. Search for a good broker that will treat you fairly and a real estate agent that will show you the homes YOU are interested in (not the listings they have) so as to not waste your time and energy. Have them focus on your needs not their personal listings. Enjoy your house hunting and make your home ownership a pleasure by planning ahead and gain the information you need to make wise choices. Impulse buying a home can be a disaster after the facts come out. Pretty packages do not always have nice things inside. www.rateinformer.com

The Housing Market has not reached its bottom and rates are going up again today

A lot of forecasters have been saying the housing slump is finished and things are looking rosy ahead. Check the article here on the Northeast part of the country. Look what CBS News says about the housing market. It states that this is the biggest decline in 24 years. This is great news for home buyers if you do your research and do not overpay in a still declining market. Rates have moved up about .25% in rate but are still very low. The following article from MSNBC says we will not have a recession but look what this Newsweek information says could happen with our economy. We say now is the time to stay lean and be careful about any investment. Do your best to make sure the home you are buying is affordable and suits your need to LIVE in and is not just as a investment. Investors may need to hold on to their purchases a lot longer than in past years. Make sure you have the financial ability to hold on and maintain the expenses of the purchase in both situations of buying a home for a investment or to live in. Count the cost and shop with knowledge. We hope our site has been able to assist you in that regard. www.rateinformer.com

Rates have moved up slightly this week and Builders keep trying to pump up the market

As you read this article by a Home Builders Association it is interesting to see the thought pattern. They say you can NEVER lose buying a home. Tell that to some of the people who bought at the highs in the market. Yes it may be true IF you wait long enough you will recover from your high purchase price but if you are not staying in the home for a period of time long enough to overcome the high price you paid you will and CAN lose money. Buying a home is not always buying a money tree. It is true real estate can be a great investment IF done correctly and with the proper knowledge of market values and true cost it is still a investment that can make or lose money. Shop wisely and learn all you can to make wise decisions and do not get sucked in by the talk of "you must buy now" attitude being pushed down your throat as if this is the last house on earth. Most of the great real estate investments are made by knowing the three W's: When, Where and What to buy. Once in a great while someone will "fall" into a great deal. You can make that great deal on a home happen with the right homework. Be very careful and count the true cost of owning the American dream. If you do your homework it can happen and not be a nightmare. Save for a at least a 5% down payment. That will lower you interest rate and monthly payment. Work on your credit scores. you must have good credit scores. You can check your credit scores online at My Fico.Com or Equifax.Next, you need to have some savings for a 5% or more down payment. Do you have a good way to save for a down payment? We highly recommend Emigrant Direct. They pay one of the highest rates in the country on their savings account, with no minimums, no fees. www.rateinformer.com

The Housing Market Slowdown has a HUGE domino effect

When Housing slows down a lot of other related businesses also feel the pinch. Look at this article. Then take a look at the report from a large financial institution. The red flags are popping up all over the place about the housing BUBBLE TROUBLE. We hope it does not cause a large crush on the economy but it certainly appears to put a damper on it. If we receive any more inflation we will be in big trouble. In Florida home owners are been smashed be HUGE rises in Insurance premiums and Monster property tax increases. Premiums have gone from $1200-$1500 to $3500-$4500 per year if they have not been cancelled. Taxes on the New Homes or resale's have been $3500-$7000 and even much higher on waterfront property on a new 2000 square foot home in a decent area. Read this article about the Florida mess. Be very careful and count the true cost of owning the American dream. If you do your homework it can happen and not be a nightmare. Save for a at least a 5% down payment. That will lower you interest rate and monthly payment. Work on your credit scores. you must have good credit scores. You can check your credit scores online at My Fico.Com or Equifax.Next, you need to have some savings for a 5% or more down payment. Do you have a good way to save for a down payment? We highly recommend Emigrant Direct. They pay one of the highest rates in the country on their savings account, with no minimums, no fees. www.rateinformer.com

Foreclosures are still on the rise !

As Arms continue to adjust and housing costs such as insurance and taxes continue to rise borrowers are be squeezed right out of their homes. Look at the article about Colorado. Look at the Florida report on the same issue. Be careful not to fall into that huge bear trap. Do not get a ARM loan even if it saves you a little at first. A fixed rate will give you much more security and safety. You at least will have the mortgage amount locked in. Then you will "only" have to worry about the other items such as the insurance and taxes which are not so easy to control. Manage your finances buy locking in what will be very likely your greatest debt of your life to a fixed rate. You will be happy down the road that you did. Next, DO NOT buy more home than you can afford. Do not look down the road and say we can afford it in 2-3 years when this salary increase happens or that job promotion happens. Maybe it will not "happen" One thing for is the house payment will continue to "happen" each and every month. Live within your means and control your finances by keeping them manageable. Gain the knowledge you need to make a wise decision. If you are looking for a home to live in look with knowledge for the right price and the right rates and fees. The first thing is that you need to have good credit scores. You can check your credit scores online at My Fico.Com or Equifax.Next, you need to have some savings for a 5% or more down payment. Do you have a good way to save for a down payment? We highly recommend Emigrant Direct. They pay one of the highest rates in the country on their savings account, with no minimums, no fees.

Judge Judy Reveals High Mortgage fees!

This week on Judge Judy There was a case involving two mortgage brokers and it was a real eye opener. It was revealed that JUST the broker alone was to make $9600 on a $300,000 loan but ONLY made $4600. Don't you feel sorry for her? She said because the loan amount dropped to $235,000 she only made the $4600 and did not feel she should share it to the referring broker who was her friend. There is a short take at this site. How would you like to get a loan from these two? As we have stated many times before be careful when shopping for a loan. Use our site to make wise decisions and do your homework.

Are All Mortgages and Fees the Same?

Many times Mortgage people will tell you that you will pay the same fees one way or the other (by a higher rate or paying for fees upfront). That is only a partial truth. EACH investor and EACH mortgage broker or Bank has their own set of service fees or charges. They increase their profit by adding on these fees. Some Companies and Investors just simply do not charge as many "Junk" fees as others AND STILL give you a good rate. They may even give you a better rate than the ones who charge more fees because they are willing to work for a smaller profit margin. The bigger the loan size the better the chance of a lower rate. Do not believe the old story that they are all the same. YOU are the one that can determine what type of fees you pay and what rate you will live with. Without doing the proper research you can be a big loser. Your rate can eat at your income for years to come. Remember Knowledge is POWER.

Can I and Should I Really Buy a Home Now?

It is not always a ordeal getting a mortgage IF you have good credit and are managing your debt load. If you are having or have had credit issues in the past getting a mortgage can be very difficult at times. Many borrowers quite honestly are trying to buy a home when the credit facts show they cannot at THAT time afford one. The other problem is on the Mortgage Industry side. There now is a loan out there for ANYONE who WANTS to buy a home EVEN if they cannot afford to buy or maintain one. That can make getting a mortgage a nightmare because of all the hoops you have to jump though and will cost you a lot of fees and usually a very high interest rate. Is it worth it just to keep up with the Jones? Why not take some time and work on your credit issues and save some money for a down payment and then buy a home you can afford to buy AND maintain. This just makes good financial sense. You can clean your credit up by slowly paying down your bills and building your credit score back up. Do not overbuy a home you cannot afford to maintain just because you have the down payment. That does not make any financial sense. It is true it will take time to accomplish this but it will bring you a great payback down the road. Get off the path of credit card debt that more and more people are following and walk on the path of financial success by controlling your debt and spending habits. We live in the NOW generation and people want it now even if they cannot afford it now. The problem is you will pay for it later and at a much greater cost. You can check your credit scores online at My Fico.Com or Equifax.Next, you need to have some savings for a 5% or more down payment. Do you have a good way to save for a down payment? We highly recommend Emigrant Direct. They pay 5.05% on their savings account, with no minimums, no fees.

When Will Feds Raise Rates?

England raised their interest rates today which will put pressure on the Feds to do the same. Our dollar depends on foreign Investors who want to get a high rate of return and compete with other currencies (such as the British Pound). When other countries raise rates the Feds have to compete and so follow suit. The other problem is INFLATION. Read what is being said about England's reason for raising rates and notice this article about some thoughts on the Feds thinking on Inflation. Rates are going up. Inflation was not under control last year by any means. We do not suggest that they will jump up overnight but will do so slowly. It would not surprise us to see 6.75-7% rates by years end. After the winter season home prices will drop big time in the south areas such as Florida as Buyers and Sellers go back home. Investors will be "stuck" with their investment and will need to unload the debt burden it carries. Home prices will come down (at least in many areas of Florida) and could start to look more realistic in pricing for Buyers. That will offset any increase in Interest rates by a long shot. Keep saving for the down payment and be ready and start looking now and do not be afraid to make a "low" offer (according to the real estate agent) on the home you want.

The Air is Still Leaking Out of the Housing Bubble

The Housing Market still continues it decline and sometimes the information we receive are not telling the whole story. We feel there will be Home builders and other related fields (Real Estate & Mortgage Companies, Etc) that will fall as the housing market declines further. When Interest Rates go back up (and they will!) it will really damage the housing market as buyers get priced out of the home they want and Arm Loans start to adjust to much higher rates. Remember the information you receive about housing is old news from a month or more ago. Be careful about what you buy and make sure you do not over extend your finances. Careful shopping for mortgages and homes can bring relief down the road if thing get tight for your financial future. The first thing is that you need to have good credit scores. You can check your credit scores online at My Fico.Com or Equifax.Next, you need to have some savings for a 5% or more down payment. Do you have a good way to save for a down payment? We highly recommend Emigrant Direct. They pay 5.05% on their savings account, with no minimums, no fees.

Home Sales Are Still Slowing

Here is a interesting story of the housing market in SW Florida. This is happening all over in various places in the country. Even so many real estate companies and even builders along with Home sellers refuse to acknowledge this FACT. If they want to sell their homes in these areas they must lower the prices to attract a buyer. This good news if you are a buyer but be careful when you are looking at homes. Get current sale prices not 6 Month old ones.