Speaking in an interview with Bloomberg TV, Richmond Federal Reserve President Jeffrey Lacker (non-voter) said the Fed should not wait too long for a rate hike.
The Richmond Fed President said inflation will slow if oil prices drop. He added that inflation is still a "risky situation," and that keeping inflation in check requires a tight monetary policy.
Lacker also noted that inflation expectations have stabilized, but are still fragile. He said the Fed funds rate shouldn't be lowered anymore. He expects core inflation to rise further before falling.
taken from : http://www.mortgagenewsdaily.com/8192008_Lacker_Rate_Hike.asp
Selasa, 19 Agustus 2008
More Negative Press for Fannie and Freddie
Last week former Federal Reserve Chairman Alan Greenspan strongly criticized the form of the Congressionally mandated Freddie Mac/Fannie Mae "backstop" program and a survey by the Wall Street Journal found that a small majority of economists involved thought the bailout of the two government sponsored entities (GSEs) would ultimately be invoked, handing taxpayers responsibility for their $5.2 trillion debt.
Monday the stock market began to take the rumors seriously and Fannie Mae dropped 22.25 percent ($1.76) of its value to $6.15 per share while Freddie Mac lost 1.46 (24.96 percent,) falling to $4.39. Yesterday's close represented enormous losses over the last year when Fannie and Freddie were trading for $70.15 and $65.88 respectively.
What was worse, the entire market followed Fannie and Freddie down the tubes Monday with the Dow Jones finishing the day off over 180 points. The market was tanking again on Tuesday with the Dow off 126 points at 11 a.m.
Meanwhile, more voices were added to the chorus of experts and pundits predicting that government intervention will be required.
taken from : http://www.mortgagenewsdaily.com/8192008_Fannie_Freddie_Bailout.asp
Monday the stock market began to take the rumors seriously and Fannie Mae dropped 22.25 percent ($1.76) of its value to $6.15 per share while Freddie Mac lost 1.46 (24.96 percent,) falling to $4.39. Yesterday's close represented enormous losses over the last year when Fannie and Freddie were trading for $70.15 and $65.88 respectively.
What was worse, the entire market followed Fannie and Freddie down the tubes Monday with the Dow Jones finishing the day off over 180 points. The market was tanking again on Tuesday with the Dow off 126 points at 11 a.m.
Meanwhile, more voices were added to the chorus of experts and pundits predicting that government intervention will be required.
taken from : http://www.mortgagenewsdaily.com/8192008_Fannie_Freddie_Bailout.asp
Jumat, 25 April 2008
Understanding to Closing Process
After you’ve gone through the grueling mortgage process, you’ll eventually reach that day everyone involved has been waiting for - the day you close. The closing process basically involves all of the parties signing the final documents and officially transferring ownership of the property to you. Closing fees are typically collected here and the transaction is essentially complete. Here’s an idea of what you’ll need on the day of closing and what to expect.
What You Should Bring
* Contract
* Home appraisal and inspection reports
* Good faith estimate
* Flood certification
* Homeowner’s insurance and mortgage insurance if required
Main Purpose of Closing
Sign legal documents: There are several important documents you’ll have to sign here, such as the transfer of ownership of the property and your mortgage terms from you lender. Read all of the documents carefully and make sure they are in line with what you had previously agreed upon. Remember that you can delay closing if necessary.
Pay closing costs and escrow: Now will be the time to pay the fees associated with closing your mortgage. The fees may already be included in your mortgage, you might have a separate loan for them, or they could be paid out of pocket.
Who’ll be there?
* You, and your spouse if they’re involved with the transaction
* Your attorney (not always necessary, but can help you through the process)
* The lender
* The title company’s representative
* Real estate agent, if one was used
* Closing agent
After you’ve completed the closing process, you’ll officially have ownership of the home and the mortgage process will be complete
source : www.mortgagefindersnetwork.com
What You Should Bring
* Contract
* Home appraisal and inspection reports
* Good faith estimate
* Flood certification
* Homeowner’s insurance and mortgage insurance if required
Main Purpose of Closing
Sign legal documents: There are several important documents you’ll have to sign here, such as the transfer of ownership of the property and your mortgage terms from you lender. Read all of the documents carefully and make sure they are in line with what you had previously agreed upon. Remember that you can delay closing if necessary.
Pay closing costs and escrow: Now will be the time to pay the fees associated with closing your mortgage. The fees may already be included in your mortgage, you might have a separate loan for them, or they could be paid out of pocket.
Who’ll be there?
* You, and your spouse if they’re involved with the transaction
* Your attorney (not always necessary, but can help you through the process)
* The lender
* The title company’s representative
* Real estate agent, if one was used
* Closing agent
After you’ve completed the closing process, you’ll officially have ownership of the home and the mortgage process will be complete
source : www.mortgagefindersnetwork.com
Types of Loans
There are so many different types of loans out there to accomodate the many different situations home buyers and home owners need. From first time home buyers to current homeowners, we provide all sorts of loan financing such as mortgages, refinancing, and home equity loans. Be sure to research, shop, and compare all loan types to find which one best suits you.
source : www.mortgagefindersnetwork.com
source : www.mortgagefindersnetwork.com
The Best Stop for Mortgage Loans
Buying a home is exciting, but can also be stressful with so many decisions to make regarding which types of loans to have and which lender to obtain it from. Should you deal directly with a lender or have a broker? What's the point compensation for having a broker? How much of a loan payment can you afford? How much should the loan amount and loan term be? Is the interest rate fixed or adjustable? The questions keep rolling in, but you can ease your mind now that you are here. Mortgage Finders Network will help you with your mortgage loan process. We're all you need to get started
source : www.mortgagefindersnetwork.com
source : www.mortgagefindersnetwork.com
Jumat, 11 April 2008
U.S. Consumer Sentiment Falls Further in April
According to preliminary data from Reuters and the University of Michigan, U.S. consumer sentiment fell sharply from March's final 69.5 to a score of 63.2, the lowest level since March 1982 when the index stood at 62.2.
Economists had been expecting a deterioration to 69.0.
The current conditions index fell from 84.2 in March to 78.4 in April while the economic outlook index fell from 60.1 to 53.4.
The one-year inflation expectation jumped to 4.8% after rising to 4.3% in March.
Prior to the release, many economists had been calling for a downside surprise to the indicator based on poor data from earlier in March.
"The consensus forecast was always way too optimistic given the huge drop in the Conference Board's index, and this survey has gone some way to closing the gap," said Ian Shepherdson of HFE.
"Bearing in mind that more than half of all consumption is non-discretionary (food, energy, housing, etc.) this means discretionary spending will fall at a 1% rate or more, something we haven't seen since 1991," he added. "And there's no sign confidence has hit bottom yet."
The Conference Board's consumer confidence index unexpectedly declined to a reading of 64.5 in March despite forecasts for a reading of 73.5.
By Erik Kevin Franco and edited by Stephen Huebl
©CEP News Ltd. 2008
Economists had been expecting a deterioration to 69.0.
The current conditions index fell from 84.2 in March to 78.4 in April while the economic outlook index fell from 60.1 to 53.4.
The one-year inflation expectation jumped to 4.8% after rising to 4.3% in March.
Prior to the release, many economists had been calling for a downside surprise to the indicator based on poor data from earlier in March.
"The consensus forecast was always way too optimistic given the huge drop in the Conference Board's index, and this survey has gone some way to closing the gap," said Ian Shepherdson of HFE.
"Bearing in mind that more than half of all consumption is non-discretionary (food, energy, housing, etc.) this means discretionary spending will fall at a 1% rate or more, something we haven't seen since 1991," he added. "And there's no sign confidence has hit bottom yet."
The Conference Board's consumer confidence index unexpectedly declined to a reading of 64.5 in March despite forecasts for a reading of 73.5.
By Erik Kevin Franco and edited by Stephen Huebl
©CEP News Ltd. 2008
Mortgages: Buy-To-Let
Buy to let mortgages used to be few and far between, however most lenders now offer a range of buy to let mortgages. Indeed the number of buy to let mortgages in existence has grown sixfold to 700,000 over the last five years. The points to consider are pretty similar to those you make when choosing your mortgage to buy your own home.
First of all, you need to decide whether you want to end the mortgage term with a fully paid-for property or not. If you have made no arrangements to pay off the mortgage capital (either through a repayment mortgage or a separate investment vehicle) then you may have to sell the property so you can pay it off.
It also depends on what you want from the rental income throughout the mortgage term. If you need some of the rent to live on immediately then an interest-only mortgage would probably be more appropriate because, after making the interest payments, there would be some rent left over for your own pocket. If you don't need the rent for yourself, then all of it can be used towards the interest payments with the surplus being used for the repayment of the capital or, indeed, to help finance a further buy to let investment.
Remember you also need to keep some cash spare to cover void periods and repairs to the property. And, don't forget tenants who fail to pay their rent too - not only does it mean you're subsidising their housing when they don't pay up but it's an expensive business to have them evicted from your property.
So the advantage of a repayment mortgage is that the property will be all yours when you come to end of the mortgage term. The risk is that you will have less money to play with should you need some of the rent for other purposes and it's also not as tax-efficient.
The advantage of an interest-only mortgage is that your monthly mortgage payments will be lower so more of the rental income should be available to you - and you don't need to worry about the capital repayment until the end of the term. The risk is that, if you haven't made other arrangements, you'll have to sell the property eventually to pay off the original loan.
However, it's worth considering the following: Your mortgage interest payments can be deducted from rental income for tax purposes. However, if you have a repayment mortgage, any capital payments can't be offset. This means you'll have to pay tax on a larger part of your income. That's why it can make a lot of sense to get an interest-only mortgage instead, where the total mortgage payment can offset income.
Bear in mind that you can get flexible buy-to-let mortgages which enable you to enjoy an element of both the repayment and interest only mortgages. Access to cash is immediate in an emergency and, if you don't need to get at it, any surplus can be used to repay the capital in the meantime. These are, however, slightly more expensive and you need to be very disciplined about how you manage your account.
Watch out for:
Again, uncompetitive mortgage rates and mortgage redemption penalties. As always, shop, shop, shop around. Also don't forget that you can remortgage your buy-to-let properties, just as you can with an ordinary mortgage.
from : www.fool.co.uk/mortgages/information
First of all, you need to decide whether you want to end the mortgage term with a fully paid-for property or not. If you have made no arrangements to pay off the mortgage capital (either through a repayment mortgage or a separate investment vehicle) then you may have to sell the property so you can pay it off.
It also depends on what you want from the rental income throughout the mortgage term. If you need some of the rent to live on immediately then an interest-only mortgage would probably be more appropriate because, after making the interest payments, there would be some rent left over for your own pocket. If you don't need the rent for yourself, then all of it can be used towards the interest payments with the surplus being used for the repayment of the capital or, indeed, to help finance a further buy to let investment.
Remember you also need to keep some cash spare to cover void periods and repairs to the property. And, don't forget tenants who fail to pay their rent too - not only does it mean you're subsidising their housing when they don't pay up but it's an expensive business to have them evicted from your property.
So the advantage of a repayment mortgage is that the property will be all yours when you come to end of the mortgage term. The risk is that you will have less money to play with should you need some of the rent for other purposes and it's also not as tax-efficient.
The advantage of an interest-only mortgage is that your monthly mortgage payments will be lower so more of the rental income should be available to you - and you don't need to worry about the capital repayment until the end of the term. The risk is that, if you haven't made other arrangements, you'll have to sell the property eventually to pay off the original loan.
However, it's worth considering the following: Your mortgage interest payments can be deducted from rental income for tax purposes. However, if you have a repayment mortgage, any capital payments can't be offset. This means you'll have to pay tax on a larger part of your income. That's why it can make a lot of sense to get an interest-only mortgage instead, where the total mortgage payment can offset income.
Bear in mind that you can get flexible buy-to-let mortgages which enable you to enjoy an element of both the repayment and interest only mortgages. Access to cash is immediate in an emergency and, if you don't need to get at it, any surplus can be used to repay the capital in the meantime. These are, however, slightly more expensive and you need to be very disciplined about how you manage your account.
Watch out for:
Again, uncompetitive mortgage rates and mortgage redemption penalties. As always, shop, shop, shop around. Also don't forget that you can remortgage your buy-to-let properties, just as you can with an ordinary mortgage.
from : www.fool.co.uk/mortgages/information
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