Mortgage rates started the day by going down today aided by early weakness in Stocks, off a soft Gross Domestic Product (GDP) reading.
But since then, the release of additional economic reports – which were still sluggish, but better than expectations – helped Stocks recover much of their losses, and caused rates to rise.
For today, I will recommend a Locking.
Have a great weekend.
Taking the step into home ownership is one of the most important financial decisions a person will make in their lifetime. There are many factors to consider when embarking on this venture. Literally hundreds of loan programs are available, and it is important to find the one that best fits your personal long-term goals.
First and foremost, you must have a mortgage consultant in your corner that is willing to take the time to know what your long-term goals are. Communication is the key factor here. Curious prospective home buyers sometimes turn to Internet-based services just to see what current interest rates are. But a faceless web site will not take the prospect’s future financial planning into consideration or guide the potential borrower through the many nuances of the loan process. When shopping for a home loan, be wary of web-based services that offer programs to reel prospects in with attractive rates that are based upon unrealistic time frames. If a lender is offering a terrific rate based on a 10-day lock-in period, it is unlikely that the potential home owner would actually be able to find their dream home, get through the negotiation process and win approval from a lender within such a short period of time. This is called short-pricing, and when it comes time to close the transaction, the rate that was originally offered is simply no longer available. As a result, the unfortunate prospect is bulldozed into a loan program with a higher interest rate. It is highly unlikely that a qualified loan originator whose business is based upon referrals will use unscrupulous tactics such as this to get new customers in the door!
Once you have found a mortgage consultant that you feel comfortable working with, lay your goals out on the table because it will have a tremendous impact on choosing a loan program that meets your specific needs. One of the most important factors to consider is how long you wish to borrow the money for. For example, if you know you will only be in the home for five years, it wouldn’t make sense to opt for a 30-year loan program or pay points up front to secure a lower interest rate. You would not be in the home long enough to benefit from such action.Your mortgage consultant should be able to narrow down a selection of programs based on the information that you have provided, and present you with an easy-to-read spreadsheet that clearly defines viable options for your interest rate and amortization schedule, monthly payment and any potential savings you may realize by paying points up front.
Moreover, a reputable loan originator will not hesitate to share this information with your tax consultant or financial planner so they may offer additional feedback on your behalf.
Home ownership imparts a rewarding vehicle for building wealth and a strong financial future. The mortgage consultant that you choose should be there not only when your loan closes, but should also provide you with ongoing service to assist you in managing that debt over time.
Bankruptcy is an uncomfortable subject for a variety of reasons. The most obvious is the potential havoc it can wreak on your finances. Running a close second is the negative stigma which is often attached to the process. This negativity is important to mention because strong emotions can sometimes lead to unsound financial decisions with devastating results.
Bankruptcy becomes a viable option for someone who is “upside down” in terms of cash flow. In other words, when a person has more money going out each month than coming in, bankruptcy should be considered if no reversal of this negative cash flow is within sight. The longer someone waits to explore the various options available, the more serious his or her situation may become.
One of the worst things people can do in this situation is to borrow more money to try and pay off their debts. On paper, this is clearly an unwise financial decision. In the real world, however, it is very common for individuals to pursue this strategy in an attempt to buy time and hold off on filing for bankruptcy. On the surface, this is certainly a noble notion; however it can often compound the problem and serves only to delay the inevitable.
For many homeowners in the midst of this upside down cash flow, speaking to a qualified mortgage professional is a much better option. An experienced loan officer can objectively look at your finances and help you determine if restructuring your mortgage would not only help, but possibly even alleviate any need for bankruptcy.
If bankruptcy is the only option, seek out a reputable bankruptcy attorney and credit counselor. A qualified mortgage specialist can provide references for you as well, as he or she works with these professionals on a regular basis. Reliable references are essential in this case because experienced professionals greatly increase the odds of a successful bankruptcy experience. It’s that simple.
When filing for bankruptcy, be completely honest and accurate regarding every aspect of your financial situation. This includes any changes to your income which may occur throughout the process. Bankruptcy is a federal procedure, adjudicated by real judges, and scrutinized by representatives who coordinate with the Department of Justice, the FBI, and the IRS.
Here are some additional steps you can take to make the bankruptcy process as painless as possible:
Save all paperwork regarding your bankruptcy, and keep it organized. This will prove beneficial after your bankruptcy as you now have all of the pertinent information in one place. Also, be sure to write down your discharge date. It’s surprising how many people forget to do this.
Establish a household budget. This can be accomplished in many ways, but there are several inexpensive computer programs available which do an excellent job.
Throughout the bankruptcy, do your best to not only live below your means, but to save as much cash as possible. You never know what you may need it for once the process is completed.
Be prepared for a barrage of junk mail. There will be sharks on the loose who are hoping to capitalize on your need for credit.
Tips for Rebuilding Credit:
If you must buy a car, focus on transportation as opposed to style. Buy an inexpensive, used car, and try to get a loan for it. It’s a good idea to figure out what your budget allows in terms of a dollar amount first. This means obtaining financing prior to looking for a car.
Get a secured credit card. Secured credit cards allow for the cardholder to deposit a said amount of money into an account, thus establishing the spending limit of the card. Missed payments result in deductions from the account. Some of these cards will reward responsible borrowers by upping the limit without an additional deposit. Some will even convert the account into a traditional credit card. (Be wary of offers of “easy credit” or any card which asks you to call a 900 number. You will be charged for the call.)
Meet with a credit repair specialist. Not only can they help you clean up the damage to your credit report, they can advise you on specific ways to rebuild the credit you lost as well.
While it does take time, there is definitely life (and credit) after bankruptcy. Some mortgage lenders will even lend to you within a year or so after a bankruptcy. If you’re in serious financial trouble, the trick is to get the help and advice you need from professionals you trust.
Mortgage rates are holding onto last week's lows.
Stocks around the globe are higher this morning, thanks to some renewed confidence in European Banks after speculation that the stress tests are showing that European banks are stronger than previously perceived.
I recommend floating for now.
"Mortgage rates started the day lower on worse-than-expected employment news, but have since given up their gains.
The official Jobs Report came in worse than expected, showing 125,000 job losses in June. The unemployment rate did fall to 9.5%, but that drop is due largely to 625,000 people being removed from the calculation because they're discouraged and no longer actively searching for work.
I reccommend locking today. Remember, the markets will be closed on Monday in observance of Independence Day."
Have a great weekend.
"Mortgage rates are coming down this morning after some bad economic news around the globe – including union strikes in Greece and Spain, concerns over the condition of European Banks, and China's lending practices.
In the US, Consumer Confidence came in well below expectations, highlighting public concern about the overall economy and job market. While this is not good for our economy it is good for mortgage rates.
I recommend floating. I will keep you posted if a change of course is needed."
When a marriage ends in divorce, the lives of those involved are changed forever. During this time of upheaval, one thing that shouldn’t have to change is the credit status you’ve worked so hard to achieve.
Unfortunately, for many, the experience is the exact opposite. Unfulfilled promises to pay bills, the maxing out of credit cards, and a total breakdown in communication frequently lead to the annihilation of at least one spouse’s credit. Depending upon how finances are structured, it can sometimes have a negative impact on both parties.
The good news is it doesn’t have to be this way. By taking a proactive approach and creating a specific plan to maintain one’s credit status, anyone can ensure that “starting over” doesn’t have to mean rebuilding credit.
The first step for anyone going through a divorce is to obtain copies of your credit report from the 3 major agencies: Equifax, Experian®, and TransUnion®. It’s impossible to formulate a plan without having a complete understanding of the situation. (Once a year, you may obtain a free credit report by visiting www.AnnualCreditReport.com.)
Once you’ve gathered the facts, you can begin to address what’s most important. Create a spreadsheet, and list all of the accounts that are currently open. For each entry, fill in columns with the following information: creditor name, contact number, the account number, type of account (e.g. credit card, car loan, etc.), account status (e.g. current, past due), account balance, minimum monthly payment amount, and who is vested in the account (joint/individual/authorized signer).
Now that you have this information at your fingertips, it’s time to make a plan.
There are two types of credit accounts, and each is handled differently during a divorce. The first type is a secured account, meaning it’s attached to an asset. The most common securedaccounts are car loans and home mortgages. The second type is an unsecured account. These accounts are typically credit cards and charge cards, and they have no assets attached.
When it comes to a secured account, your best option is to sell the asset. This way the loan is paid off and your name is no longer attached. The next best option is to refinance the loan. In other words, one spouse buys out the other. This only works, however, if the purchasing spouse can qualify for a loan by themselves and can assume payments on their own. Your last option is to keep your name on the loan. This is the most risky option because if you’re not the one making the payment, your credit is truly vulnerable. If you decide to keep your name on the loan, make sure your name is also kept on the title. The worst case scenario is being stuck paying for something that you do not legally own.
In the case of a mortgage, enlisting the aid of a qualified mortgage professional is extremely important. This individual will review your existing home loan along with the equity you’ve built up and help you to determine the best course of action.
When it comes to unsecured accounts, you will need to act quickly. It’s important to know which spouse (if not both) is vested. If you are merely a signer on the account, have your name removed immediately. If you are the vested party and your spouse is a signer, have their name removed. Any joint accounts (both parties vested) that do not carry a balance should be closed immediately.
If there are jointly vested accounts which carry a balance, your best option is to have them frozen. This will ensure that no future charges can be made to the accounts. When an account is frozen, however, it is frozen for both parties. If you do not have any credit cards in your name, it is recommended you obtain one before freezing all of your jointly vested accounts. By having a card in your own name, you now have the option of transferring any joint balances into your account, guaranteeing they’ll get paid.
Ensuring payment on a debt which carries your name is paramount when it comes to preserving credit. Keep in mind that one 30-day late payment can drop your credit score as much as 75 points. It is also important to know that a divorce decree does not override any agreement you have with a creditor. So, regardless of which spouse is ordered to pay by the judge, not doing so will affect the credit score of both parties. The message here is to not only eliminate all joint accounts, but to do it quickly.
Divorce is difficult for everyone involved. By taking these steps, you can ensure that your credit remains intact.
Mortgage rates started the day at the lowest levels ever. Thats right ever. But has sinced changed course.
In the news, Initial Jobless Claims came in slightly below expectations. Also, Durable Goods Orders for May signaled that the manufacturing sector is improving, albeit modestly.
I recommend locking today and taking advantage of these historic rates.
Mortgage rates are flat today, and with the important Jobs Report coming up on Friday, traders may be reluctant to push Bonds much higher prior to the release of that potentially market-moving report.
In the news, Pending Home Sales for April came in above estimates and at the highest level since October 2009. Overall, the Pending Home Sales index is up 22% over April 2009.
I recommend floating today.
Mortgage rates have been all of the place today. as Stocks started the day with another round of selling. The sharp sell-off in the Stock market has helped Bond prices of late, as some of the money from Stock sales is finding its way into the Bond market, including Mortgage Bonds. Some of this action reversed course this afternoon.
In other news, the Senate passed the controversial financial regulation bill last night with sweeping changes for the financial world. The bill must still be reconciled with the one passed by the House before being sent to the President to sign into law.
For now, I recommend floating as I monitor the situation to see how the direction in Stocks plays out.”
"Mortgage rates are down today after some mixed economic reports this morning.
In the news, the Producer Price Index, which measures inflation at the wholesale level, was tame for the month of April. In other reports, Housing Starts in April rose above expectations to the highest level since October 2008, while Building Permits fell short of expectations. Although the overall data on housing is still mixed, this represents a good time for long-term investment in the housing market.
For now, I recommend floating.
"Problems in Europe continue to dominate the headlines and influence global markets, as skepticism of Greek austerity measures pressured Stocks lower and weakened the Euro.
In US news, Retail Sales for April doubled expectations and marked the seventh consecutive monthly increase. However, with the uncertainty in Europe driving the trading activity, the news did little to influence the markets.
I reccommend floating today.
Mortgage rates are down today however they have hit a floor and are having difficulty moving below it.
In the news, the Commerce Department's Gross Domestic Product report indicated that the economy grew for the third straight quarter, despite the report coming in slightly below estimates. Also this morning, the Consumer Sentiment and Chicago PMI reports beat expectations.
I recommend locking today.
Mortgage rates are down a little this morning as we get more bad news from Europe and their financial situation.
However in US news, Consumer Confidence rose sharply in April to its highest reading since September 2008. This number is important because the more confidence consumers have, the more likely it is that they will help fuel the economy.
I reccommend locking and taking advantage of the gains.
"Mortgage rates are near unchanged this morning, and there are no economic reports due for release today.
The ugly word "inflation" has reared its head. United Kingdom saw consumer price inflation rise sharply in March. The financial world has become quite small and interconnected. So higher inflation in the UK could lead to higher rates there, which would pressure rates higher in the US.
I recommend locking today.
Mortgage rates have dropped a little today. However, breaking news that the Securities and Exchange Commission is charging Goldman Sachs with fraud on subprime mortgages is giving Bonds another lift.
In other news, Housing Starts for March came in higher than estimated and at the highest level since November 2008. Building Permits also came in higher. Despite the good news, Consumer Sentiment was reported below expectations, due to ongoing concerns over the job market.
I reccommend floating today, have a great weekend.
After a much better week mortgage rates have started the day by going up.
Greece is in the news again today, and investors now sense a financial rescue package will help the country avoid default. The news is strengthening the Euro against the US Dollar, which is helping to give Stocks and Commodities a boost.
I reccommend locking today. Have a great weekend.
Mortgage rates are down from their highs the last couple of days.
Later this afternoon, the minutes from last Fed Meeting will be released. These minutes may give us a better understanding on how individual Fed members feel about the 'extended period' language and the selling of MBS. We'll also see the results of the Treasury's $40 Billion 3-Year Note auction this afternoon, which could impact trading.
I reccommend floating for today.
Mortgage rates are up today on the economic news of the day, the Jobs Report. While this is some great news for our economy, its not good for interest rates.
According to the report, 162,000 jobs were created in March, making it the biggest one-month increase in 3 years. Adding to the positive news were upward revisions to January and February, which brought the last two month’s net job losses near zero.
Although rates are still good right now, they are up and we can expect them to gradually head higher over time. I recommend locking at this time."
In what has become common over the last week, mortgage bonds and interest rate are all over the place.
The Core Personal Consumption Expenditure Index for February was reported lower than anticipated, indicating that inflation remains subdued for now. Also in the news, Consumer Spending rose for the fifth straight month, while Personal Incomes were unchanged.
I recommend floating, for today.
Mortgage rates are all over the place since the Federal Reserve stopped purchasing this week. We don't expect things to change anytime soon.
In economic news, the final reading on Fourth Quarter Gross Domestic Product came in lower than the previous advanced reading. Also in the news, Consumer Sentiment was reported slightly better than expectations.
I reccommend floating today, but be careful out there.
Mortgage Bonds are starting the week improved from Friday.
Last night, the House of Representative passed the Healthcare Reform bill. Although the markets are not sure how to react just yet, the news could be a big factor over the next days and weeks depending on how everything shakes out.
I recommend floating for now.
Dont forget in order to qualify for the Homebuyer Tax Credit you must have a signed contract by April 30th.
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