Cheap Money Elusive for Many While rates are falling, borrowers face higher costs every step of the way, from rising fees for mortgage insurance to added costs that drive up the mortgage rate. At the same time, lenders have become more cautious about who they will lend to, as more people lose their jobs, watch...Read More
Has Housing Hit Bottom?Key Metric Says “Maybe” Falling prices plus low interest rates equals improved housing affordability, right? Maybe. Even if it does, however, Buyers may be too gun-shy at the moment for that to matter. According to the four local realtor associations, the Twin Cities’ Housing Affordability Index (“HAI“) is now at 192, the...Read More
Rational Moves in an Irrational Market Cont. from Part One: —Two. If you’re a Buyer, take advantage of a soft market to upgrade. That’s what stock market investors do during a bear market. Specifically, they buy blue chip stocks that are temporarily “on sale.” Similarly, today’s real estate downturn has lowered the entry point for...Read More
One Size, er, Rate Doesn’t Fit AllOne of the more noteworthy features of today’s mortgage market, besides greater volatility and generally declining rates, is the wide range in quoted interest rates. For sterling credit risks — credit scores in the high seven hundred’s or above, plenty of existing home equity (or a fat down payment,...Read More
Refinance to Lower Payments —or Avoid Higher Ones With long-term mortgage rates flirting with 5% again, many homeowners should revisit whether it makes sense to refinance. Refinancing (assuming you can) is appropriate in two situations: 1) you’re able to substantially lower your monthly payments; or 2) if you don’t refinance, you face the prospect of...Read More
Ben Bernanke’s Theme Song Maybe, somedaySaved by zeroI’ll be more togetherStretched by fewer Thoughts that leave meChasing afterMy dreams disown meLoaded with danger Maybe I’ll winSaved by Zero Holding ontoWords that teach meI will conquerSpace around me Maybe I’ll winSaved by zeroMaybe I’ll winSaved by zero–Lyrics, “Saved by Zero“; The Fixx Who knew? Personally, I...Read More
