Inflation Cools & Rates Plummet; More Inventory ≠ A Housing CRASH
Wednesday, August 10
CPI Inflation numbers came out surprisingly cool this morning – indicating it was flat month-over-month and down year-over-year (it was 9.1% in June but 8.5% in July). 8.5% inflation is still sky-high and probably under-reported too, but the bond market loved it and rates plummeted (because the ...
What Every Homebuyer Must Know About Hazard Insurance & Mortgages
Tuesday, August 09
Here are a few tidbits about Hazard Insurance, something that is required with every mortgage.1) Hazard insurance is also known as fire insurance and homeowners insurance, and it should not be confused with mortgage insurance, which only covers the mortgage and not the dwelling. 2) Non-responsiv...
Homebuyers: Be Aware of Fraudulent Mailers!
Monday, August 08
Desperate Mortgage Bankers Resort To Fraud After the 2008 meltdown, a prominent mortgage banker, who was accustomed to living very extravagantly, started a “Loan Modification Consulting” business as a way to bolster his company’s waning revenues. The only small problem was that it was 100% illeg...
The History of Interest Rates & Some Perspective
Friday, August 05
Today’s 4%-ish (jumbo) and 5%-ish rates are really low by historical standards — which is a point I make often. There are two charts below: one shows mortgage rates over the last 12 months, and the bottom shows mortgage rates since 1971 — and both are fascinating for different reasons. The bottom...
How Important Are Cash Reserves After Closing?
Thursday, August 04
Most loan programs allow borrowers to completely wipe out every penny of cash they have along with their 401ks and stock accounts. Fannie Mae, Freddie Mac, and FHA (used to finance about 80% of all purchases) require no reserves at close for most owner-occupied purchases. What Are Reserves &...
What Is The Optimal Down Payment? Hint: It’s Less Than You Think
Wednesday, August 03
Many homebuyers mistakenly believe that they need to put down as much as humanly possible for several reasons: (1) they want to minimize their housing payment; (2) they want to minimize their debt load; and (3) they want to make their offers appear stronger. However, it is often advantageous to ...