Private mortgage insurance (PMI) is insurance for the mortgage lender in the event of homeowner default. PMI helps the lender recover its costs and losses after foreclosing and selling a repossessed home. PMI rates vary by loan type, loan size, and loan characteristics. The higher the risk to the bank, the higher the cost of [...]
The headlines say that home prices are down 6.7 percent from a year earlier. It’s important to recognize that this is a national figure. “National” has nothing to do with real estate. Real estate is local. The chart above is from the latest S&P/Case-Shiller home-price index and — averaged out — shows that home prices [...]
During the Holiday Season, economists watch consumer spending intently because it makes up two-thirds of the U.S. economy. When spending is stronger-than-expected, it can lead to inflation which pushes mortgage rates higher. So far this season, mortgage shoppers should be in good spirits. Sales have fallen four weeks in a row and the outlook for [...]
Mortgage rates moved away from the best levels of the year last week with force, and this week could resemble last. Markets have been grappling with conflicting signals about the U.S. economy. On one hand, there is evidence of inflation in the form of higher cost of living. On the other hand, there is evidence [...]
Merry Christmas and Happy New Year! For those of you that’s don’t observe Christmas, may you be blessed and have a fabulous Hoiday Season as well. Well, this short video is about as close as I am going to get with “Dancing With The Stars” I put on my best overcoat, top hat, gloves and [...]
After Thursday’s passage of the Mortgage Forgiveness Debt Relief Act of 2007, foreclosed homeowners have one less worry: taxes. When a homeowner defaults on a home loan, a mortgage lender will sometimes “forgive” the debt owed. One example is when a foreclosed home sells for less money than is owed on it. The mortgage lender [...]
The resurgence of private mortgage insurance continues — if only because it’s aided by Congress. For eligible homeowners, lawmakers voted to extend the tax-deductibility of PMI through 2010. The law was previously scheduled to expire at the end of 2007. For all loans originated prior to December 31, 2010, and within those years, private mortgage [...]
Even if you’ve been recently pre-qualified (or pre-approved) for a mortgage, it may be prudent to get “re-approved”. The mortgage industry is changing quickly; being prepared beats the alternative. Recently, mortgage lenders have made adjustments in what they will lend, and to whom. This shrinks the pool of eligible mortgage borrowers. Some of these guideline [...]
Who knows how or why it started but this seems to be the time of year to reflect on the past 12 months and beyond. It also seems to be a time to set goals for the coming year. Along with goal setting, is the ability to stick to them. I personally struggle with this [...]
For most Americans (but not all), mortgage interest is tax-deductible in the year in which it was paid. With some advance planning, therefore, a homeowner can increase his 2007 tax deductions by paying additional mortgage interest while the calendar still reads 2007. The key is to make the mortgage payment due January 2008 a few [...]
