mortgage rates

What If The Energy Company Paid YOU Each Month?

November 30, 2007

This 30-second video posted to YouTube and shows a home’s electric meter running backwards after installing solar panels. The meter runs backwards because the home is putting more power into the electric grid than it is taking out for itself. With energy costs expected to rise sharply this winter and the costs of “going green” coming […]

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Buyers, You Will Pay More For A Home Than The Agreed-Upon Purchase Price

November 29, 2007

In real estate, the true cost of buying a home is always higher than the home’s purchase price itself. This is because of service charges from governments, lenders, and title/escrow companies. Because there is no such thing as “typical” closing costs because each home purchase is different, home buyers should remember that the actual cost […]

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Why You Should Remain In “Ready Position” For Your Mortgage Rate

November 28, 2007

Easy come, easy go. There was a strong rally Monday afternoon in the mortgage bond market.  It was sudden and furious, mostly coming on in the last 60 minutes of trading. When markets closed, mortgage rates for conforming home loans were grazing their lowest levels in nearly two years. It lasted overnight and into the […]

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It’s A Good Time To Buy — But Not For The Reasons You May Think

November 27, 2007

Since November 1, the following banks have written-down at least $1 billion in their respective loan portfolios: Bank of America Barclays Bear Stearns Citigroup HSBC Morgan Stanley Wachovia Wells Fargo This is a big deal to people in the market for a home loan because when banks repeatedly take mortgage-related losses, it can lead to […]

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The Week In Review (November 26, 2007) : What To Watch For

November 26, 2007

In a holiday-shortened trading week, mortgage rates finished the week slightly improved. But, because many traders had left early for Thanksgiving, matching buyers and sellers at any given price proved to be an exercise.  Mortgage rates bounced wildly as a result. Between now and the New Year, expect the same volatility.  Fewer market players means […]

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Black Friday Trivia

November 23, 2007

Today is “Black Friday”, a day that many Americans get started on their Holiday Season shopping. Did you know? The earliest known reference to “Black Friday” is November 29, 1975.  The term was mentioned in two separate articles, both with Philadelphia timelines.  Therefore, the term Black Friday is believed to have originated in Philadelphia. Did […]

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Who Are Fannie And Freddie And How Do They Help Homeowners?

November 21, 2007

Fannie Mae and Freddie Mae are quasi-government agencies in that they are publicly-owned, but overseen by the government. The purpose of Fannie and Freddie is to make sure that money is available to homeowners that want home loans. Neither lends to consumers directly, though; you’ll have to talk to your loan officer for that.  Instead, […]

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On Random Rate Rallies And Thin Trading

November 20, 2007

Mortgage bonds staged a late-day rally yesterday, exaggerated by the holiday-shortened week and because trader participation is light. (We’ll revisit this theme several times between now and the New Year so don’t get tired of it.) When mortgage bonds rally, it means that demand for them is strong and that pushes mortgage rates down. Unfortunately for […]

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The Week In Review (November 19, 2007) : What To Watch For

November 19, 2007

In a holiday-shortened week with no major economic data releases, expect worries about the credit markets and speculation about holiday shopping to take center stage. Last week was a mixed bag for the economy and mortgage markets responded in kind.  Rates were relatively unchanged. The news started with Wednesday’s Retail Sales report.  In showing a […]

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The Cost Of Living Includes The Cost Of Gas And Food (And May Get More Expensive Through The Winter)

November 16, 2007

October’s Consumer Price Index was released Thursday and showed a 3.5 percent increase in the cost of living since October 2006. The report also showed a core inflation rate of 2.2 percent. The “core CPI” is a smaller part of the overall CPI. The math is the same, but it specifically excludes cost changes in […]

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Homeowners Should Have Basic Wills

November 15, 2007

Statistic #1: According to the Census Bureau, 69% of Americans are homeowners. Statistic #2: According to lawyers.com, 42% of Americans have a basic will. Basic Math: 27% of American homeowners are in need of a basic will. Addressing mortality can be difficult for some people, but even more difficult is addressing a home that’s been […]

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Where You Find Speculators, You May Also Find Failures

November 14, 2007

This morning, RealtyTrac released its Q3 2007 foreclosure data for the United States. The leading cities for foreclosures are: Stockton, CA (1 per 31 households) Detroit, MI (1 per 33 households) Riverside/San Bernardino, CA (1 per 43 households) Fort Lauderdale, FL (1 per 48 households) Las Vegas, NV (1 per 48 households) Sacramento, CA (1 […]

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The Week In Review (November 13, 2007) : What To Watch For

November 13, 2007

The Dow Jones Industrial Average and NASDAQ shed 4.1% and 6.5%, respectively, last week. Normally, this would be good news for mortgage rates because investors tend to look for “safe havens” in bond issues, but instead, just treasuries benefited last week.  Mortgage bonds were left in the dust. Mortgage rates finished to the upside after […]

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The Simple Math Of How Mortgage Rates Are Born

November 9, 2007

We talk a lot about how mortgage bonds are the driving force behind mortgage rates but we never get into the math of it.  So, to help our understanding of the subject, let’s delve a little deeper. Here’s the (very simplified) math behind it: If you pay $100 today for a $6 annual interest payment […]

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Mortgage Rates Fall For ARMs Faster Than For Fixed Rate Mortgages

November 8, 2007

After running neck-and-neck for several months, interest rates for fixed-rate mortgages and adjustable-rate mortgages are finally diverging. Despite pricing worse than its fixed-rate counterpart throughout much of August and September, ARMs are now close to 0.375 percent lower for conforming products sold through Fannie Mae and Freddie Mac. This equates to roughly $25 per month per $100,000 […]

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It’s Not Your Imagination : Getting A Home Loan Is More Challenging For Everyone

November 7, 2007

If it feels like mortgage approvals are harder to come by than in years past, that’s because it is. And we’re not just talking about sub-prime mortgages (for which the market has nearly vanished in just 12 months). According to a story on Marketwatch, mortgage guidelines are more challenging for everyone to meet — gold-star […]

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It Ain’t Easy Being Green–or is it??

November 7, 2007

No, I am not talking about the song by Kermit the Frog, I am talking about a recent insert in the Wall St. Journal entitled “Handicapping the Environmental Gold Rush” spoke about the benefits of investing in Green Real Estate. According to McGraw-Hill Constructions “2006 Green Building SmartMarket Report,” Green buildings generate 3.5% higher occupancy rates, […]

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The Week In Review (November 05, 2007) : What To Watch For

November 4, 2007

As we saw last week, the economy is simultaneously hot and cold.  This makes for a strange ride on Wall Street because stocks and bonds tend to move on emotion rather than on fact. This “mob mentality” is one reason why mortgage rates have bounced up and down so much lately. For example, we saw […]

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Why Driving Extra Miles For Cheaper Gas May Be A Waste Of Money

November 4, 2007

With gas prices up 37% nationally since this time last year, Americans have grown accustomed to driving a little bit further just to find a “gas bargain”. But, is it worth it? Based on today’s national average gas price of $3.00 and assuming a 15-gallon fill-up and a 20 miles-per-gallon vehicle, a car owner would […]

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It’s A Terrific Time To Revisit Your Mortgage Rate

November 2, 2007

If you bought your home in 2007 and your mortgage is a conforming home loan, you may be able to take advantage of  the current mortgage market conditions and lower your mortgage rate. As of this morning, mortgage rates are near their lowest levels of the year. Of course, not every conforming borrower is eligible. […]

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