February 1, 2010 – 6:10 pm
Mortgage crisis! What mortgage crisis?
Well, if you bought your home in the last 5 to 10 years, or did a major refinance during that period, and you are looking to sell now, you likely understand that we have gone through a mortgage crisis.
However, if you own your home free and clear, the mortgage crisis is not your concern. If you are at retirement age though, you have your own set of financial concerns. Like, how are you going to get by on a fixed income that is becoming smaller and smaller as prices for nearly every expense you encounter continue to rise. I get even more concerned every time the Congress or the White House talks about stimulating the economy, modifying healthcare, or “solving” the looming social security problems.
If you are a home owner though, 62 or older, there is a way to take more control over your financial situation. You can check in to a reverse mortgage.
At first I thought this was another way for banks to get my house. But, after just a little research I realized that a reverse mortgage can be a safe way to use my equity in my house to guarantee I have enough monthly income to live the way I want.
You can find out more by using this reverse mortgage calculator to see how you might be able to use a reverse mortgage to take control of your income.
October 28, 2009 – 6:24 am
Just found a great article on US News & World Reports comparing what you get for a median priced house in different cities around the country. The article, as with all of their articles, is very well written and researched.
One very interesting fact from their article is that national median price of an existing home dropped to $177,700 in August. Put that in some type of context you say? Well, two years prior to that you would have had to pay $225,000 for a median priced house. Yes, that is a 21 percent decrease. In some areas of the country I’d say that is right where you would expect, but in others you can not even sniff a new house for $177,700.
I recommend reading their article to see how your region has been affected in the last couple years.
October 8, 2009 – 7:05 am
While the popular network news stations would like you to think that the recovery is upon us, and therefore the foreclosures and bankruptcies were going to end… the fact is that foreclosures are still likely to be with us in record proportions for the next few years. Check out this article on reuters. It contains a few real nuggets of data that should at least make you think.
The most telling to me is that on average, there is another foreclosure filing in the US every 13 seconds. Yes that’s right… every 13 seconds.
Think about your personal finances. Think ahead of time about how you might be able to withstand a layoff or sudden decrease in income. Better to prepare and not need it, than to be unprepared if it does.
October 5, 2009 – 6:55 am
If you’re thinking about refinancing your current mortgage, you must consider an online mortgage refinance. Various mortgage lenders are presently offering this as a simple option to homeowners who wish to refinance. Receiving quotes from various lenders does not take much time and is convenient. The following tips would help you refinance your mortgage online.
Gather refinancing quotes: To begin the online refinancing procedure, obtain interest rate quotes from different lenders or you can ask your mortgage broker to get quotes from online refinance lenders. Online mortgage brokers would gather interest rate quotes and terms and conditions of refinancing from different online lenders for you. They would be composed in a list or report and supplied to you. Majority of lenders can offer you with a refinancing quote within a small period of time. You must try to find free no obligation quotes.
Lenders vs. Brokers: For refinancing your mortgage online, you can just work with an online mortgage broker. You can also work with online mortgage lenders directly. Plenty of banks and mortgage lenders are currently providing online mortgage refinancing to consumers. Just keep in mind that you need not refinance with your existing mortgage lender, hence you can shop around for other lenders.
Compare rates and terms: For locating the best possible deal, you have to compare the interest rates and terms. You should not take into account the interest rate only while thinking about whom to refinance with. Consider the terms and conditions of the new mortgage, the amount of principal you would have to pay, the tenure of the loan as well as any charges related to online refinancing. Just ensure that it is reasonable for you to refinance.
Official Refinancing Quote: When you get a refinance option that you prefer, call the lender once more and ask for an official quote. This can be performed online and through contacting the lender.
Online Refinancing Formalities: The formalities for refinancing online can be completed by electronic means. You would be requested to fill in the financial details and put forward the application to conclude the procedure of online mortgage refinance.
September 18, 2009 – 7:57 am
Do you have $10 million to spend on a house?
In New York, it will not get you this townhouse on East 71st Street. It’s offered for just under $17 million.
In Austin, that same $17 million would buy you just over 92 median priced houses. According to the Austin Chamber website, the median house cost in Austin was $183,700 in 2007.
Obviously that is a special townhouse in New York, but it does sometime amaze me the divergence in housing prices between regions in the United States. Even the price difference between different areas of the same town can vary just as dramatically.
So… location, location, location.
When you go out looking for a house, the condition and size of a house is only a portion of the price. Remember to find the right location, and to that end, compare similar houses in similar locations when deciding if you are finding the right price.
September 8, 2009 – 1:18 pm
Many people find themselves struggling to pay their monthly mortgage. It is also quite possible that many of these same people have not been able to take advantage of lower interest rates due to drops in their home values. It would seem that the exact crisis that is making it so hard to make monthly mortgage payments is also correlated with making refinancing difficult (ie the mortgage crisis caused a drop in home values… with lower home values, refinancing is nearly impossible).
If this describes your situation, there is a chance you may be able to take advantage of the Making Home Affordable Program. This program is intended to help homeowners through the crisis while simultaneously strengthening the US housing market. While it has sometimes been a political lightning rod, there is no doubt that consumers who qualify will see personal benefit. If your loan is held by Fannie Mae or Freddie Mac, you might be eligible to reap this benefit.
Determining whether you might be eligible is as simple as checking out the eligibility requirements on the Fannie Mae web site. (http://www.fanniemae.com/homeowners/refinance-or-modify.html)
Just being eligible does not guarantee that you will qualify. However, doing a little research can make a world of difference in your financial well-being. Take a few minutes to see if this program is right for you. If you can “modify” or refinance into a more affordable mortgage you should definitely consider doing so.
You will need to have a few things in hand when you talk to your mortgage company, but their site does a great job of telling consumers what they will need.
August 21, 2009 – 8:51 am
Not to add to the bad news about mortgages, but I found an interesting graphic that shows mortgages by State in the United States. The real interesting part of this is that they added a graphic by state of bankruptcies as well for the first half of 2009.
Check it out here.
August 20, 2009 – 6:06 pm
We all know that the recession has been going on for a while now. And, I think the large majority of people realize that a significant downstream impact of the recession has been a rise in foreclosures. Of course, the impact has tended to be concentrated in several problem states, with the most prominent being California and Florida. This is not to say that other States are immune, but rather that these States are bearing the brunt of it. A recent article in the LA Times quantifies the national problems, and points out that at the moment “the number of homeowners who are either behind on their payments or in foreclosure rose to more than 13% nationwide — a new record.”
Wow.
I hope that you are in good shape with regards to your mortgage. If you are feeling the pinch though it is better to be proactive and research loan modification programs or at least seek out a financial advisor who may be able to you with your specific situation.
August 18, 2009 – 11:03 am
We have strived to put as much mortgage information as possible in this guide.
Whether you are a first time homebuyer, investing for the first time, or just have some questions, this guide should provide information which will help you choose the right mortgage program for your particular needs. We hope that the information in this guide will help educate you about mortgages in general and allow you to make informed decisions when it is time for you to choose a program.