Smart Borrower Blog

Archive for March, 2008

The Slow Wheels of Washington

Congress is making noise about help for homeowners that are facing foreclosure, but it is almost a certainty that President Bush will not back it and, in all likelihood, veto anything they come up with.  All proposals on the table right now would be a big help, but like anything else, have their pros and […]

Bailing Out Main Street

News on Reuters today tells of a new plan set forth by the Bush administration that will hopefully allow many homeowners facing foreclosure to get a little well needed relief.  Aimed at home owners who owe more on their homes than the house is worth, it  would mark the first time the White House has […]

More On Bear Stearns

It seems that even our presidential candidates are jumping on the home mortgage bandwagon, and are offering to the public what they want to hear.  This is, after all, an election year.  Sen. Clinton proposes a 30 billion dollar fund to help those in trouble with mortgages, and Sen. Obama upped the tally this week […]

Mortgage Insurers Changing Their Terms

The media has made a really big deal in recent weeks about mortgage insurers flagging certain ZIP codes and refusing to inshore home loans in those areas. This decision affects homes in at least 34 states, about 9600 of them. But when you take a closer look, you can see why these particular loans might […]

Why Do Lenders Require 20% Down Payment?

Traditionally, a 20 percent down payment was standard on a mortgage loan. Ten or fifteen years ago, that changed, and lenders began offering loans with much less money down. This was good for younger families or first-time borrowers, because it meant that they could get into a home more quickly. With the recent mortgage crisis, […]

Do Banks Need to Change the Way They Lend Money?

Recently, the Associated Press reported that banks need to lend money more freely. But banks “lending freely” is what got us into this mortgage mess in the first place. Banks are tightening their standards, some, but they’re still advertising heavily for borrowers. I’ve noticed that, even with all the attention to the mortgage market, new […]

The Feds New Fix

Now that the Fed has made some bold moves in its effort to shore up the fallen economy, there is worry amongst analysts and economists that are wondering if this latest fix will help or just be a short-term fix, or if it will have any real effect on things.  Many are worried that taxpayers […]

More On Bailouts

I see every day the rumble of folks all the way from Wall Street to the Hill calling for governmental intervention in help for people facing foreclosure.  Already, the Fed has provided a $30-billion short-term loan to JP Morgan Chase & Co. to facilitate its purchase of struggling Bear Stearns Company.  Even Presidential hopeful Sen. […]

Troubles On The Street

With the fall of Bear Stearns, many other banks are getting a good looking at.  In an article in the Baltimore sun, the journalist Peter Morici makes some very good points about the current mortgage situation.  I quote him often here. Mr. Morici makes it clear to us all the way things have changed over […]

Mortgage Rates not so Responsive to Fed Cuts

With the Federal Reserve cutting rates–again– many homeowners are wondering how that will affect their mortgage loans. Traditionally, whenever we think the Fed is going to cut rates, we put off refinancing our house, or purchasing a new home, thinking that our interest rate might be better later on. But since September 2007, the Fed’s […]