Mortgage Rates Tumble In a surprise, [The Federal Reserve] dramatically increased the amount of money it will create out of thin air to thaw out the still-frozen credit markets that have cramped lending to consumers and businesses alike. Indeed, the immediate effect on the bond markets was striking, with prices rising and yields dropping sharply...Read More
What’s So Bad About Bad Credit?? For many consumers, preserving one’s credit rating is one of those sacrosanct, preserve-at-all-costs values. But what if you don’t plan to buy anything? Or are afraid to? Or simply can’t afford to? Then, a trashed credit rating really may not matter so much. Especially if it means ditching a...Read More
Recession, Uncertainty Hammer Big-Ticket PurchasesWhat to know what’s selling today? Not big-ticket items. On a scale of 1-10 (1 is the lowest, 10 is the highest), here is a shorthand — mine — for the magnitude of various consumer (and business) purchase decisions. Just like the Richter scale, this scale is logarithmic, kind of (8.0...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
Pursuing a Short Sale? Better Be Patient One of the reasons that a “short sale” can be so protracted is all the decision makers involved. For those who aren’t familiar, a short sale is when a listed home is worth less than the mortgage against it. Rather than foreclose, the lender can often do better,...Read More
