Real Estate
Mortgage Rates Rise Even With Federal Reserve Rate Cuts
Last modified on 2008-02-16 18:13:29 GMT. 0 comments. Top.
You would think that mortgage rates would fall with the Federal Reserve cutting rates this week, only to see them rise. According to Bankrate.com, mortgage rates are up .17% this week with the 30 year at 6.17% as of December 12, 2007. How can this be, when the Federal Reserve has been cutting rates for the last six months and also infusing capital into the banking system. Contrary to opinion, a Fed Rate Cut does not necessarily represent that all rates will decrease. Since there is still a credit crunch and the housing market in disarray, banks are hesitant to take on risks with the Real Estate market and therefore mortgage rates are staying high.
This is not a rate that the consumer sees, but the cost to banks to borrow from the Federal Reserve. Essentially it breaks down to the banks borrowing money at 4.29% and then lending it to the public at 6.17%.
Data Source: FederalReserve.gov
If you love your pets, we suggest you get pet insurance as soon as you can. For personal finance, get an unsecured loan and go take a vacation. It’s not hard to find really cheap travel insurance. If you’re a large business and you don’t have business insurance, you better get it before god forbid a crisis occurs. If you’re not able to pay off credit card payments, look into credit card consolidation. This is just lke a bad credit loan through the federal reserve.
888-995-HOPE Funded by Big Banks to Help Troubled Homeowners
Last modified on 2007-12-07 19:53:30 GMT. 2 comments. Top.
As President Bush announced the grand plan to help 1.2 Million Homeowners who are facing rate increases from their teaser rates, Leading Rich has dug into the foundation that is making it all happen. The Homeownership Preservation Foundation is a 501(c)(3) nonprofit that is funded by Major US Banks including, Citibank, Countrywide, GMAC ResCap, Merril Lynch, HSBC, JP Morgan Chase, Washington Mutual, and Fannie Mae.
The first wave of forclosures has really hit the economy hard and it seems that these financial institutions have much to loose and why not use thier funded counseling service to assist troubled borrowers. According to the website, ”counselors are approved by the U.S. Department of Housing and Urban Development (HUD).” This is not an endorsement to use their services, but this may not be as easy as getting a quick rate adjustment. I assume homeowners must go through counseling and financial reviews that might take a tremendous amount of effort. So be prepared to get counciled.
According to CNN, “In June 2006, the foundation recorded about 100 calls per day. In June of this year, that number had risen to 1,200 per day. Now, the center handles about 1,500 a day with bumps of up to 3,000 per day after major media coverage. Those numbers only include first-time callers.”
Leave comments about your experience with the center.
1-800-995-HOPE Busy Signal for Mortgage Holders
Last modified on 2008-02-16 18:15:24 GMT. 1 comment. Top.
If you have tried to call 1-800-995-HOPE, then you might have better luck to send a letter via snail mail than getting someone to answer. Leading Rich has been trying to get through to experience what 1.2 million Americans may find on the other end of the line only to find a busy signal. If you are a Adjustable Rate Mortgage borrower who is about to find yourself in a reset situation, then plan on keeping your weekend open until the lines free up.
BUT WAIT!!!!!!
The White House was wrong in giving the phone number, with a fresh press release “CORRECTION TO THE PRESIDENT’S REMARKS: THE TOLL-FREE PHONE NUMBER FOR THE HOPE NOW HOTLINE IS 1-888-995-HOPE.”
Most of the financial institutions giving loans to customers who have small businesses, earn more money and get rich day by day. These companies also offer credit cards at 0 APR for a limited time. Credit cards give discounts for insurance with minor bank charges. One of the forms of mortgage is secured loans and it allows you to pay off your loan in easy installments. In the time of recession, financial institutions use debt management to control their credit.
As we can see the President was off in giving out the phone number to the Press and the Public. At least it is a Toll Free number, but how was he to know that it was an 888 number. There are so many variations of the Toll Free number, that anyone can get confused. So remember if you are under water call 1-888-995-HOPE. And what does HOPE stand for?
HOmeowners PrEservation Foundation
1-888-995-HOPE Spells Mortgage Bailout for Option Arm Homeowners
Last modified on 2008-02-16 18:16:01 GMT. 10 comments. Top.
Hold the Presses!!! Your Mortgage rate is going to be frozen.
The White House has finally announced the grand plan to help people who are about to face a reset on their Mortgages. How does this effect you? Details are coming out slowly and we will provide a full detail in future posts as they come out. But if you think you are about to loose your home call 1-888-995-Hope (Special Hotline).
Deciding on interest only mortgages should not be a difficult decision. The mortgage brokers will let you know how helpful this is if you are low on finance. Your white house real estate agent will also advise you to take such mortgages. When your house is mortgaged by the bank, they can offer you a visa card with lowest rates. With good history, you can apply for more cards like today’s top amex card. These cards include discounts for travel insurance. Car insurance is also discounted through such cards, so search for car insurance quotes right now.
According to CBS News, the plan calls for a rate freeze and also the possibility to refinance an existing mortgage which will help nearly 1.2 million homeowners.
Photo:President Bush, accompanied by Treasury Secretary Henry Paulson, makes a statement about subprime mortgages in the Roosevelt Room of the White House in Washington, Dec. 6, 2007. (AP Photo/Charles Dharapak)
Treasury Working with Mortgage Industry on Bailout of Subprime Borrows
Last modified on 2008-02-16 18:02:37 GMT. 0 comments. Top.
The news for DC is hot today as a Bailout plan from the Treasury is in the works. Treasury Secratary Henry Paulson was meeting with top Mortgage Bankers on how to structure current morgage obligations so borrowers could keep their homes and avoid foreclosure. Details have not been provided to the public, but Reuters reports that the plan is close to being finalized.
According to Reuters, “… the plan would effectively extend the fixed-rate period for stressed borrowers and so shield them from a payment spike that could push them into foreclosure.” How does this effect you? It depends on the morgage obligation you have, the morgage holder (bank, investor, wallstreet), your credit, payment history, chance of default.
A close morgage banking source broke this down, that this cannot be a refinance option, but an extension of the terms of your mortage. If you current morgage is 125% of the value, there is no way a bank is going to refinance you and take even more risk. But if your current mortgage holder wants to keep their principal intact and take the chance that you will continue paying and repay all the principal, they will work extending the teaser rates.
We are finally seeing a bailout the size of the Savings and Loan Crisis in the 80’s except this time the bailout is for the whole country.
Photo: A foreclosure sign is seen in Antioch, California, November 27, 2007. REUTERS/Erin Siegal
Anyone engaged in a mortgage loan can definitely benefit in many ways to purchase his or her house. But you can increase your chances by changing the mortgage to refinance mortgage. Your bank can easily change your mortgage to suit your personal finance needs or even offer you home equity loans. In case of increased debts, debt consolidation loans can help. Beware of a foreclosure that may get in the way to settle your debts with the bank There are many credit cards with low interest rates but a 0 credit card is the most beneficial to customers. With these cards you could be eligible to get really cheap car insurance.
White House Bailout Plan for Subprime Borrowers
Last modified on 2008-02-16 18:01:06 GMT. 0 comments. Top.
Does the White House have a plan to help millions of people stuck with high rate mortgages? Apparently there is a plan, but it may take several months to flush out. “It’s premature to talk about those discussions at this point,” White House spokesman Scott Stanzel told reporters on Friday.
Full details on this development at Reuters.com.
Photo: A house for sale is seen in Antioch, California November 27, 2007. REUTERS/Erin Siegal
There are many real estate companies doing large scaled businesses like for white house properties. The involvement of finance has great importance to run any kind of business. It could be some home equity loans or any other kinds of business loans. You can also get your payments settled by having bad credit loans. These loans are very useful for debt solutions or for paying your medical insurance as can be a student loan. If you dont have cash to pay your debt, just get your creditcard swiped. Some cards offer the best medical insurance benefits for limited time.
Staying On Top During a Recession
Last modified on 2008-02-16 17:56:54 GMT. 0 comments. Top.
Whether you think there is a recession on the way or have been listening to the the news about the doom and gloom that is about to come, you should be prepared and looking to protect yourself.
As with many large businesses, Cash Flow is the the only way to survive. Our favorite author Robert Kiyosaki (author - Rich Dad Poor Dad) writes “…the worst is yet to come…” He spells out the basics of how he has come to this conclusion in his latest article.
The Economy, International Impact , Too Many Dollars, and Inflation are the basis of his thesis. If you think he has some valid points, then button down the hatches and brace yourself. As he says “…Throw Yourself a Life Line…” and buy international currency to hedge against your losses. The silver lining may be to buy Silver.
But we recommend to start looking about your personal finances and increase cash flow.
If you want to hear more about Robert’s Guide to Wealth, his trained army is currently presenting a workshop titled “Learn to Be Rich” throughout the United States .
Everyone wants to lower their expenses and get greater income to become rich, so why not choose cheap insurance for your house, car and even your pets? In the time of recession, people enjoying loans could benefit from debt solution opportunities. Packages offered by many finance institutions giving a bad credit loan help overcome hard times. The type of mortgage depends upon the nature of the business. The business could be a work at home business. An investment property could also be mortgaged by banks.
Sizzling Home Prices in a Down Market
Last modified on 2007-11-13 07:04:56 GMT. 0 comments. Top.
Are home prices going up or down? Forbes latest feature discusses “Ten Rising-In-Value Real Estate Markets”.
Are prices in your area falling, maybe you should consider moving somewhere prices are expected to rise. Here is a run down of the top sizzling markets.
Salt Lake City, Utah - Median Home Price $233,100
1yr Increase: 21.9%
Binghamton, N.Y. - Median Home Price: $111,200
1yr Increase: 19.8%
Salem, Ore. - Median Home Price: $227,900
1yr Increase: 16.7%
Farmington, N.M. - Median Home Price:201,900
1yr Increase:14.0%
Allentown-Bethlehem-Easton, Pa.-N.J. - Median Home Price: $274,500
1yr Increase: 12.8%
Beaumont-Port Arthur, TX-Median Home Price $127,700
1yr Increase:11.8%
Glens Falls, N.Y. - Median Home Price: $175,700
1yr Increase: 10.7%
Reading, Pa. - Median Home Price: $157,800
1yr Increase: 11.2%
Glens Falls, N.Y. - Median Home Price: $175,700
1yr Increase: 10.7%
Spokane, Wash. - Median Home Price: $197,700
1yr Increase: 10.4%
Cumberland, Md.-W.Va. - Median Home Price: $109,300
1yr Increase: 9.3%
Bad Trade for ETrade
Last modified on 2007-11-13 02:56:37 GMT. 0 comments. Top.
How DIRE is it for ETrade Financial Group, ETFC, with their stock tanking today by nearly 50%.
Our friends at BlogginStocks report that Bankruptcy may be in sight. As with the whole mortgage market, no one knows what the impact may be. If a company has in any way been involved in the mortage market, there most likely is a risk. All he number crunchers have been working profusely to peg the impact.
The initial estimate is $1 billion loss creating almost a $2 billion drop in market cap. What is going to be left if the company has another $1 billion loss? There is only 1.65 billion left in market cap. Also many investors must be wondering why are they in the mortgage market? Only time will and Money will tell what the outcome will bring.
