Hello Hello, and Buy Buy
Posted on November 15, 2008
Filed Under Economy | Leave a Comment
Earlier I wrote an article cautioning about buying a home in an area where prices are falling.
That is not to say “don’t buy”, but rather, “don’t buy in the wrong place at the wrong time”. However, today I have a different thought in mind. And that is to encourage you to consider buying in the right place at the right time.
Along with the demise of financial markets, real estate prices have plummeted. Institutions that out-survived Bear Stearns, Lehman Brothers, WAMU, Fannie Mae, and many others gone the way of the dinosaur, are now holding mortgages they are not so confident about. And there are plenty of “home owners” who are now selling their homes because they want to try to get rid of them before they get foreclosed upon. This all adds up to… cheap home prices.
Read more
Bear Stearns Collapse, JP Morgan to Bail Them Out
Posted on March 30, 2008
Filed Under Subprime Mortgage | 1 Comment
Another big one bites the dust. Amazing. Bear Stearns joins the ranks of the fallen Goliaths. Shocking as it may seem, however, I can’t say that I am shocked. The reason is that I have had firsthand insight into their internal operations - primarily through a stint I did at their subsidiary, EMC Mortgage.
EMC Mortgage was (still is, I suppose) a mortgage trading company that buys mortgages originated by lenders and brokers and then services them. EMC was largely managed directly by Bear. That means it was subject to Bear’s policies and procedures, and was tightly controlled by Bear.
Read more
Avoid Buying a Home with Declining Value During a Real Estate Boom
Posted on February 20, 2008
Filed Under Home Finances | 1 Comment
If an area like Phoenix, AZ, or Las Vegas, NV, or Frisco, TX is growing while the real estate markets in the rest of the US are cooling, you might think that buying an established home in a growing area would be a good move, right? But, that is not necessarily the case. There are some important things to think about when you go to get your mortgage quotes.
Let’s say you buy a nice home in an established neighborhood. It is maybe 10 years old and in good repair. You see new stores and schools being built all around, and the area has a good track record for growth. And it continues to grow. That is good, and in general it is good for the value of your home.
But let’s say you need to sell your home for some reason after 2 or 3 or 5 years… Read more
Interest Rates Fall Again - Should I Refinance?
Posted on February 17, 2008
Filed Under Home Finances | Leave a Comment
Mortgage rates are reaching new lows in late February. Many people are asking whether they should refinance. The answer is… Maybe. At least that is the initial answer on the way to the ultimate yes or no answer. And the only way to get that ultimate answer is by endeavoring to find out. Not to sound trite, but it is the truth.
Let me just say that despite the bombardment with offers from all sorts of banks and mortgage companies with offers to refinance – that I usually ignore – I would have to say that now is one of the best times in a long time to check it out. Even though I refinanced only 2 and a half years ago, my mortgage company keeps sending me offer notices. I have called them twice, only to find out that they cannot beat the deal I already have…
Read more
Should I get two mortgages to avoid paying PMI? Yes and No
Posted on October 13, 2007
Filed Under Home Finances | Leave a Comment
The question seems clear - “Should I finance/refinance my home with 2 mortgages in order to avoid having to pay for Private Mortgage Insurance (PMI)?” I say yes, while Dave Ramsey says no. Obviously the answer is not as clear as the question. So let’s take a look to see what the best answer is. Fortunately it might not be very complicated after all…
Read more
Avoid placed home owners insurance
Posted on October 7, 2007
Filed Under Home Finances | Leave a Comment
What is “placed insurance”? Very simply, it is when your mortgage company or lending bank purchases home owners insurance for your house and makes you pay for it. It is usually very expensive.
“How could they do that?” you ask.
Read more
Insurance - You Bet Your Life on it!
Posted on September 26, 2007
Filed Under Home Finances | Leave a Comment
What type of life insurance should I buy?
It is no secret that I am a student of pragmatism and simplicity. As such, it is also no secret that I am a student of Dave Ramsey and a graduate of his FPU - Financial Peace University.
As a prudent student of financial products such as investments and insurance, one of the first steps in truly learning the lesson is to truly understand the objectives of those products and their types.
Read more
Life Insurance, How Much is Enough?
Posted on September 24, 2007
Filed Under Home Finances | Leave a Comment
With the purpose of life insurance being to provide financially for the surviving family members in the event of the death of one of the head of the household, you must ask youself what will be needed for your loved ones.
Let’s look at Mike and Jill. Mike goes to work every day at his job, and Jill works every day as a stay-at-home mom and homeschool teacher. Mike works hard, but willingly acknowledges that Jill probably has the harder job.
Read more
My federal income tax refund more than a year late!
Posted on September 19, 2007
Filed Under Home Finances | Leave a Comment
By reading the headline you might think that I should have a headache from receiving my tax refund so late. However, the opposite it true. For those of you who are self-employed or do consulting, here is why…
Read more
US Federal Reserve Bank eases lending
Posted on September 18, 2007
Filed Under Economy, Home Finances, Subprime Mortgage | Leave a Comment
Good news today on the lending and borrowing front. The Fed cut interest rates by 1/2%. That can make a significant difference in the overall cost of a home loan over its lifetime. In fact, it can make a big difference in getting a loan at all. Hint…
Read more
