Smart Borrower Blog

Archive for January, 2008

Fed Cuts Rates – Again

Jan 31st, 2008 @ 10:31 AM by MortgageMentor

The Fed cut rates for the second time in a week yesterday, reducing the funds rate by ½ point to 3 percent. The cuts are being given due to the final quarter of 2007, when the gross domestic product expanded at 0.6 percent – less than half the expected rate. This makes five times that […]

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How can Mortgage Payments Change? Part 2

Jan 30th, 2008 @ 7:02 PM by MortgageMentor

One reason mortgage payments can be altered, even though you might carry a fixed-rate mortgage, is that it’s legal for lenders to raise the monthly payment if they determine that there is a deficit in the escrow account. So, imagine that you remodeled your home last year. Because you had to apply for a permit, […]

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How can Mortgage payments Change?

Jan 29th, 2008 @ 7:02 PM by MortgageMentor

Someone asked recently whether mortgage payments ever change for the better – going down instead of up. Of course my immediate reaction was: Yes, if the interest rate on your Adjustable Rate Mortgage drops. But then I realized there could be other instances in which the monthly payment would change. For example, if your mortgage […]

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Texas Company Is Flipping Homes

Jan 27th, 2008 @ 4:29 PM by Alden Smith

It was inevitable, and I am surprised it has not happened before this.  A company in Texas, Econohomes, is buying up foreclosed property, and turning around and selling it to people in need for a price they can afford.  The company is buying these properties for pennies on the dollar, giving it a slight markup, […]

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Refinancing Is On The Rise

Jan 26th, 2008 @ 3:52 PM by Alden Smith

According to Reuters, the Fed cut has had some effect on the mortgage market.  The cut has made refi much more enticing, and with interest rates steadily dropping, it makes about $1 trillion dollars in current loans looking much better for refi.   The fears of a recession are really drubbing the market, with a benchmark […]

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30 Year Mortgages Continue To Decline

Jan 25th, 2008 @ 6:09 PM by Alden Smith

As reported earlier, 30 year mortgages have been taking a hit in the market.  This usually stable mortgage has hit its lowest level in four years.  The market is hoping that these low rates will help spur the market.  Today on, interest rates were at 5.79% for 30 year fixed rates.  (A little tip […]

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ARMs Becoming Less Popular with Consumers

Jan 24th, 2008 @ 12:12 PM by MortgageMentor

Freddie Mac recently released its 24th Adjustable Rate Mortgage Survey. The survey is taken during a given week, in this case the week of Dec. 17, and from 112 lenders. The results show that ARMs have dropped off recently, for the first time since 2003. Hopefully this means that borrowers are finally getting the message. […]

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Sellers can Help Buyers – Part II

Jan 22nd, 2008 @ 12:14 PM by MortgageMentor

Last week I blogged about some ways that sellers can help their home seem more appealing to buyers. Seller concessions, like the buy-down or paying part of the mortgage, are two easy ways to do that. In fact, covering any of the fees — closing costs, discount points, appraisal or attorney fees, inspections fees, etc. […]

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FHA Looking Better Every Day

Jan 20th, 2008 @ 5:08 PM by Alden Smith

Rates on 20 year fixed mortgages continue to fall.  Taking a look at’s front page, you can see that today’s national average is 5.79%.  Although this rate is good, you can pretty much bet that not a lot of people are going for a new mortgage or refi.  The evening news tonight spoke about […]

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Controversy In The Mortgage Market

Jan 19th, 2008 @ 4:51 PM by Alden Smith

It seems every where we turn, we see lenders being dinged for their participation in the sub prime rat race.  There is talk of “liar” and “no doc” paperwork, of “teaser” loans, unethical lenders and the whole smelly ball of wax.  It is no wonder then, when you read about Continental Home Loans. The Melville-based […]

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