All Posts Tagged With: "Mortgage"

Americans are the biggest borrowers in the world. We’re also the most in debt!

“Why is this,” you ask? Well, after World War II, our grandparents (or parents for you old-heads) had a large increase in money available to them for both consumer goods and to help establish credit. As they acquired more and more household wealth, they also became more credit-worthy, both to the lenders and in their own eyes. The result has been the complete, social acceptance of debt.

Skip to today, and payments on mortgage and consumer debts absorb almost three-fourths of the average citizen’s annual income (and that’s after taxes). For most people, there’s not much left after this. A lot of Americans are being forced to use one credit card to pay on another, or to delay one bill so another overdue bill can be paid. To top this off, personal bankruptcies had doubled in the past decade, and most of the people who filed for them had jobs. Unexpected bills and reductions in worker’s pay were the root causes for these bankruptcies. Americans can simply not afford any more debt. Scary to think about, right? Continued

Buying a home right now is a ridiculous idea (sorry realtors … for telling it like it is)!

Why on Earth would someone want to take out a home mortgage right now … right in the heart of this current economic crisis? First off, the housing market is in the crapper as I write this, and the wheel-turners and gatekeepers of this failing industry are still trying to get too much money, for too little house (we truly have to go back to the mid 1990’s for anything resembling a fair price). Secondly, the banking industry is suffering with the same outmoded plan of action (try to get a loan right now to see what I mean)! For all of this mayhem, you can pretty much thank the current administration (who millions will be throwing a worldwide party for when they leave office next January)!

What I will now tell you is the truth, and nothing but the truth: The right time to buy will be in a couple of years, because it will take nearly that long to clean up the trash and corruption that has been plaguing us for nearly a decade now! And while you’re waiting, like the smart people are doing, you might as well start saving for that glorious day when you and your family can walk through your first home’s front door, knowing that you did the right thing!

Just think about this fact: you don’t have the money right now for a huge down payment on a home (huge meaning 25% or more) but you certainly will when the time is right, if you at least try out some of the easiest ways to save (that most people aren’t thinking or telling you about) which I have included below: Continued

Once you have decided to apply for a mortgage, you need to be able to work out how much you can afford to pay.

You can do this by performing a mortgage payment calculation. There are certain considerations when you calculate mortgage payment levels that will suit you and that you need to keep in mind: How much mortgage can I afford? What type of mortgage should I get? What kind of loan payment schedule suits me best?As always, it is best to start at the beginning. How much mortgage can I afford: answering this question is easy – but you must be honest with yourself! Look at your earnings, savings and your expenses. How will these be affected by a mortgage? Some expenses like rent will disappear when you are a homeowner, but a mortgage will bring other expenses (you might have removal costs and you’ll almost certainly have legal costs). An online financial calculator will allow you to work out exactly how much you can afford to commit to in a mortgage.

Now, you must decide what kind of mortgage is best suited to your needs. There are various types of mortgages, but don’t let this put you off – the choice makes it easier to find a mortgage that suits you best. Continued

The bailout of America’s mortgage giants could have a profound impact on your personal finances.

Let’s face it. The economy is awful right now. It’s a mess that has taken a long time to reach critical mass, and it will take a while to get it all straightened out.

The mortgage giant bailout affects every homeowner seeking a mortgage. On the positive side, most analysts believe that Sunday’s takeover of Fannie Mae and Freddie Mac will likely translate into lower mortgage rates and greater availability of credit. Rates could drop by 1 percentage point from the stubbornly-high 6.39% for a 30-year fixed rate mortgage.

The government bailout’s goal is to make mortgages easier to obtain and afford. By reinforcing the mortgage financing giants, they can continue buying mortgages from lenders and thus inject much-needed cash into the system. Continued