Tag Archives: mortgage

Debt Wipeout: The Great $4.45 Trillion Experiment

Imagine this scenario. Bankers and Mortgage Brokers have gone berserk writing mortgages for people who could not afford to pay them off. Some customers didn’t even make the first payment. Some signatures were forged to get approval. It was an era of pure “greed.” Now, imagine this fictitious conservation between two bankers: “Tom, you know we have a lot of junk here with some of these mortgages.” “Yes, says Bill. Why don’t we just package them together and resell them to hedge funds and pension funds? We’ll use a fancy name like Collateralized Debt Obligations. That way no one will know exactly what we are selling them.” This scheme goes along for a while until a few “sane” investors start thinking: “I don’t think we should buy this stuff.” There are no bids and the market freezes up. Panic sets in and the markets are in freefall. The bankers run to the politicians and beg, hat in hand, for a bailout from Congress. The politicians dream up a fancy name like TARP and give the bankers $787 billion of taxpayer money. However, this is just a drop in the bucket. A whopping $7 trillion of household debt has been wiped out.
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Save Over $100,000 by Refinancing Your Mortgage

The train is leaving the station. Now you have the chance of a lifetime to save over $100,000 by refinancing your present mortgage. Sound too good to be true? Not at all. Before we crunch the numbers, you should have a basic knowledge about how a mortgage works and what expenses you are likely to have.Continue Reading

Refinance Your Mortgage Under the Federal HARP Program

Many Americans are not aware that they can refinance their existing mortgage even if they are “under water” (owe more than their home is worth.) Only 10% of eligible mortgage holders have taken advantage of the program. When the housing bubble burst, Congress passed two laws to help home owners avoid foreclosure. One program termed the Home Affordable Modification Program (HAMP) is specifically designed for owners who are on the verge of foreclosure. It helps to restructure the mortgage so the homeowner can continue to make payments. The second program called Home Affordable Refinance Program (HARP) is designed to help homeowners refinance their mortgages at low rates.Continue Reading

Why the Sudden Jump in Mortgage Rates?

Something unusual happened this past week. Mortgage rates that had remained relatively stable for the past year suddenly jumped ½% to 4%. Now home- buyers are wondering what is going on. Did we hit bottom for mortgage rates? Several factors are at play when we try to find answers.Continue Reading