Smart Borrower Blog

Archive for December, 2008

Fed Moves Forward with MBS Purchases

Dec 31st, 2008 @ 6:34 PM by Amber Nelson

On Tuesday, the Federal Reserve named four investment companies it has appointed to start buying up billions of dollars worth of mortgage-backed securities (MBS) during the coming months, in an effort to stabilize the national economy and mortgage market. The enlisted companies are BlackRock Inc, Goldman Sachs Asset Management, PIMCO, and Wellington Management Co. These […]

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Refinancing Models Beginning A New Boom?

Dec 29th, 2008 @ 5:07 PM by Alden Smith

From reading my posts, you might think that I tend to dwell on the negative aspects of the banking and mortgage industry.  That isn’t really the case – my sources don’t really give me a lot to crow about.   Actually, I look for good news every post.  It is a bit hard to do lately.  […]

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Existing Home Sales and Prices Decline in November

Dec 27th, 2008 @ 6:47 AM by Amber Nelson

As the economy continued to weaken, sales of existing U.S. homes fell in the latest month, as did the median home price, according to data released by the National Association of Realtors.  Existing home sales, which include single-family, town homes, condominiums, and co-ops, dropped to a seasonally adjusted rate of 4.49 million units in November, […]

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Refinancing May Be A Good Option Right Now

Dec 26th, 2008 @ 8:25 PM by Alden Smith

Things may be in bad shape right now, but bankers say that now is actually a good time to consider refinancing your home.   You of course need good credit, and your home must not have depreciated in value so much that your mortgage is under water.  Banks are willing to go for loans on people […]

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Blaming It on Bush’s Philosophy

Dec 22nd, 2008 @ 4:42 PM by Alden Smith

Bob Dylan said it best – “When ya ain’t got nothin’, ya got nothin’ to lose.”  That can be applied to a lot of the subprime mortgages that have gone through foreclosure.  Homeowners did not have a vested interest in these homes, because they were bought with creative mortgages and in many cases no money […]

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Mortgage Interest Rates Reach A 37 Year Low

Dec 19th, 2008 @ 6:39 PM by Alden Smith

We are seeing 30 year mortgage rate at their lowest levels in 37 years.  Now, what we need is for credit to loosen up so that people can buy.  It does little good to have low interest rates when the banks are being very tight with their cash.  Even with the Fed throwing money at […]

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Federal Reserve Makes Historic Rate Cut Decision

Dec 18th, 2008 @ 8:46 AM by Amber Nelson

The Federal Reserve made an unprecedented move Tuesday by resetting its target interest rate to a range of zero to 0.25 percent, down from 1.0 percent, citing continued weakness in the U.S. markets as the impetus for the dramatic decision. “Since the Committee’s last meeting, labor market conditions have deteriorated, and the available data indicate […]

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Equity Loss In American Homes

Dec 15th, 2008 @ 5:14 PM by Alden Smith

I posted recently about the value of homes dropping in the United States.  I said in my post that trillions of dollars would be lost this year due to these drops, effectively putting many homeowners under water on their mortgages.  Today I did some searching for some figures, and found the stats I was looking […]

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Home Values May Take 50 Years To Rebound

Dec 12th, 2008 @ 5:12 PM by Alden Smith

Many high end homes today are causes for concern in the economic struggle, because their inflated value means that the owners have ended up with an underwater mortgage, and find themselves in the unique position of owing much more than the home is worth.  For many years, homes in areas of certain parts of the […]

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NAR Predicts Lower Mortgage Rates as Pending Home Sales Stabilize

Dec 10th, 2008 @ 12:18 PM by Amber Nelson

The National Association of Realtors is forecasting lower mortgage interest rates into 2009 even though  its index of pending home sales has been relatively stable. According to a release Tuesday, the NAR Pending Home Sales Index slid down just 0.7 percent in October from the previous month and down 1.0 percent from October 2007. The […]

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