Will We Get Stress Tests from our Lenders?

The whole idea of a stress test on a financial institution seems prudent. Doubly-so when that institution is receiving taxpayer money. The stress test is supposed to tell us if a bank is prepared for disaster. We found out recently that some banks passed and some banks failed when put under the microscope. We are [...]

Short-Term Adjustable Mortgage Rates Now Higher Than 30-Year Fixed Rates

The weekly survey of mortgage lenders conducted by Freddie Mac is reporting that the average rate on a shorter-term adjustable-rate mortgage is now higher than fixed mortgages of 15 or 30 years. This is the first time since Freddie Mac started the survey over 20 years ago that the mortgage rate curve has been inverse.  Adjustable Rate Mortgages (ARM)’s are mortgages [...]

Lower Interest Rates Make Reverse Mortgages More Attractive

A reverse mortgage allows senior citizens, of at least the age of 62, to convert equity from their principal residence to cash. Similar to a normal mortgage, lower interest rates help make the mortgage more affordable. The Federal Reserve’s significant pledge to buy more than a $1 trillion worth of mortgages securities is expected to [...]

GuidetoLenders.com Provides Refinancing Tips for Homeowners

Mortgage rates continue to fall in 2009 providing refinancing opportunities for millions of Americans. The Freddie Mac weekly survey of lenders report last week that the national average on a 30-year fixed mortgage is 5.01% and 4.62% on a 15-year fixed mortgage. Unfortunately the refinancing process can seem intimidating and complex preventing some homeowners from [...]

Mortgage Rates to Lowest Level in 37 Years

Freddie Mac reported that the average rates on fixed mortgages fell to 5.19% on a 30-year loan and 4.92% on a 15-year loan which marks the lowest level since the Freddie Mac lender surveys began in the early 1970s. The ability to refinance a mortgage loan at lower rates is better for homeowners who have [...]

Fixed Rate Mortgage Questions and Answers

Should I Convert to a Fixed Rate Mortgage?
It is mentioned everyday in the newspaper, on TV, or around the water cooler at work: variable interest rates are making it difficult for home owners to afford to pay their mortgage. If you are in an adjustable rate mortgage (ARM), it may be time for you to [...]

Why the LIBOR Rate is Important to the U.S. Economy

LIBOR is the base interest rate paid on deposits between banks in the Eurodollar market. A Eurodollar is a dollar deposited in a bank in a country where the currency is not the dollar. The Eurodollar market has been around for over 40 years and is a major component of the International financial market. London [...]

Formalizing Private Loans to Family or Friends

Loans between families and friends have increased over the year as the American consumer has become more reliant on alternative methods of financing mortgage debt, credit card debt, and small business loans. Private lenders are advised to use a service like circlending.com to formalize their loans even if the loan is to a close family [...]

Another chance at a fixed-rate mortgage?

Weekly average of 30-year fixed rate mortgages over the last 3 years (source: www.hsh.com).

Today’s sell-off in blue chips and the extended rally in Treasuries has potentially created another opportunity for variable-rate mortgage holders to convert to the fixed-rate variety. As can be seen by the graph above, mortgages rates below 6.00% are well in the [...]

The 40-year and 50-year Mortgage Ripoff

The increase in mortgage rates over the last couple of years has led to a new level of desperation in mortgage lenders in placing homeowners into mortgages they may or may not be able to afford. One of the hybrid mortgages created in the last couple of years is the advent of the 40-year and [...]