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Financial Misery Loves Company: Student Loan Defaults on Rise

By:: Catherine Brock - MortgageLoan.com | Sat, 01/31/2009

Recessionary economic conditions and a poor job market are working against college grads who have high balances on education loans.

Conservative Consumers more Cautious about Tapping Home Equity

By:: Greg Mischio - MortgageLoan.com | Fri, 01/30/2009

The downturn in the housing market has inspired a new wave of thinking among homeowners. In the past, it was easy to cash out a huge amount of home equity and redo a kitchen. The drop in home values has shattered that conventional wisdom, and the cash-out refinance is fading from the financial landscape.

Debt Concepts Confuse too many Americans

By:: Catherine Brock - MortgageLoan.com | Thu, 01/29/2009

A new survey from Opinion Research Corporation for the Center for Economic and Entrepreneurial Literacy makes some discouraging conclusions about the financial management skills of American households.

New Year Focus: TARP Hearings Focus on Foreclosure Aid

By:: Tom Kerr - MortgageLoan.com | Wed, 01/28/2009

With a new White House administration taking over this month, Congress has convened once again to attack the nation's economic problems. High on the agenda is urgent attention to the housing sector, and lawmakers promise to use remaining TARP funds to provide foreclosure aid.

State Deficits Leading to Tax Hikes

By:: Catherine Brock - MortgageLoan.com | Tue, 01/27/2009

Even if Barack Obama decides to shelve his tax increases, don't get too comfortable with your tax bill just yet. At the state level, lawmakers are struggling to overcome big deficits, and it looks like increased taxes may be the only solution.

New Early Workout Loan Modifications to Help Consumers

By:: Catherine Brock - MortgageLoan.com | Mon, 01/26/2009

Fannie Mae has established a mortgage loan modification program to help consumers avert foreclosure at the very first signs of trouble.

American Home Values Heading into Deeper Waters

By:: Catherine Brock - MortgageLoan.com | Sun, 01/25/2009

Home values are still sliding, and the trend is sending more and more homeowners into negative home equity territory.

Homebuyers Turning to FHA Rehab Mortgages

By:: Tom Kerr - MortgageLoan.com | Sat, 01/24/2009

A program from the FHA to help pay for home repairs is gaining in popularity. Special FHA rehab mortgage loans provide buyers with money based on the future value of the property after repairs and improvements are completed. As a result, they're ideal for buying "fixer-upper" homes.

Credit Card Changes to Help Consumers

By:: Greg Mischio - MortgageLoan.com | Fri, 01/23/2009

Judgment day for credit card companies has come and gone. The federal government announced that the purveyors of plastic have been too harsh on their customers. A crackdown looms in 2010, one that will have severe consequences for credit card companies and consumers alike.

Calling TARP: More Mortgage Relief Needed

By:: Tom Kerr - MortgageLoan.com | Thu, 01/22/2009

As banks hoard Troubled Asset Relief Program (TARP) funds provided by the $700 billion bailout plan, the mortgage crisis continues. Advocates for foreclosure loan modification relief are now demanding that TARP money be spent to help homeowners rework troubled mortgages.

America's New Savings Plan: Mortgage Refinance

By:: Catherine Brock - MortgageLoan.com | Wed, 01/21/2009

Mortgage rates are edging lower after the government announced a plan to purchase mortgage-backed securities. Homeowners are using the trend to save money on their monthly mortgage payments.

Second Wave of Mortgage Crisis to Begin

By:: Tom Kerr - MortgageLoan.com | Tue, 01/20/2009

While the economy remains a shipwreck, many experts predict a second wave of the mortgage crisis involving Alt-A and Option ARM loans. But even more alarming is that some industry observers expect this new phase of the crisis to be worse than the original subprime fallout.

Are Loan Modification Programs Successful?

By:: Tom Kerr - MortgageLoan.com | Tue, 01/20/2009

Loan modification programs were meant to save the housing market, but new reports show little progress or success. Modified refinance plans and modified mortgages have both been offered to borrowers, but it appears that the loan modification programs themselves need to be modified.

Hear Ye, Hear Ye-Get Your Appraisal-Free Mortgage Refinance!

By:: Greg Mischio - MortgageLoan.com | Mon, 01/19/2009

The economic crisis has been unprecedented in many ways, but the latest news concerning Fannie Mae and Freddie Mac takes the cake. The mortgage refinance companies are considering issuing refinanced loans without home value appraisals.

Is Home Equity Wiped Out for the Long Run?

By:: Catherine Brock - MortgageLoan.com | Mon, 01/19/2009

In the years when real estate was booming, home equity values grew much faster than inflation, personal income, and rent metrics. Assuming that those values have to get back to where they would've been without that excessive growth, it might be a long time before home prices start increasing again.

How Much will the Bailout Cost the American Taxpayer?

By:: Catherine Brock - MortgageLoan.com | Sun, 01/18/2009

It started as a mortgage crisis and blossomed into a global economic recession. Now, the Federal Reserve, U.S. Treasury Department, FDIC, and FHA are putting all the cards on the table to fix it.

What Can We Learn from Japan's

By:: Anders Bylund - MortgageLoan.com | Sat, 01/17/2009

Banking disasters in other markets could help us understand the one we have here now.

Government Cutting Mortgage Rates: Is Now the time to Buy or Refinance?

By:: Tom Kerr - MortgageLoan.com | Fri, 01/16/2009

Even as the industry pleaded with the government to allow people access to rates of 4.5 percent, the Federal Reserve cut keys rates to almost zero. Now, 30-year fixed rate mortgages are being offered at 4.5 to 5 percent, and it may be time to take advantage and buy or refinance a home.

Positive Mortgage Crisis Side Effect: U.S. Household Debt Declines

By:: Greg Mischio - MortgageLoan.com | Fri, 01/16/2009

In the midst of a financial crisis, the likes of which the U.S hasn't seen in more than 50 years, an interesting side effect has taken place: Consumer debt has declined. This trend, startling for a country that has long relied on credit cards, may be an indication of a nationwide shift in spending habits.

Treasury Gets Free Money: A Good or Bad Thing?

By:: Catherine Brock - MortgageLoan.com | Thu, 01/15/2009

At a Treasury auction in early December, investors accepted Treasury rates of zero percent on four-week T-bills. While this is a positive development with respect to the cost of government debt, it might foreshadow the bursting of another bubble.

Credit Scores ready for Change

By:: Greg Mischio - MortgageLoan.com | Thu, 01/15/2009

Change was promised repeatedly during this year's Presidential campaign. In the land of consumer credit, change is definitely going to occur. In the spring of 2009, two of the three credit bureaus will switch to a new credit score. It's hoped that the change will make a person's FICO score a more accurate assessment of risk.

Tax Break for Refinancing or Selling Home

By:: Catherine Brock - MortgageLoan.com | Wed, 01/14/2009

A tax lien can be a major roadblock during a property sale or mortgage refinance. The IRS has initiated a program to ease this process, thus helping some homeowners save their homes or otherwise avert financial disaster.

Can a $1 Trillion Budget Deficit be a Positive Event?

By:: Catherine Brock - MortgageLoan.com | Wed, 01/14/2009

The federal debt has already surpassed $10 trillion, and current estimates indicate that this fiscal year's budget deficit could exceed $1 trillion. Strangely enough, even conservative-minded economists aren't balking at the spending, even though it's likely to lead to more government borrowing.

Obama Embracing Treasury Plan to Drive Down Mortgage Rates

By:: Catherine Brock - MortgageLoan.com | Tue, 01/13/2009

There may soon be a new chapter added to the Obama economic plan; advisors are hammering out the details of a strategy to lower mortgage rates dramatically. The plan's target mortgage rates are expected to be well below 5 percent.

Washington's Consumer Advocate: The FDIC's Sheila Bair

By:: Tom Kerr - MortgageLoan.com | Tue, 01/13/2009

FDIC head Sheila Bair is inspiring some of her fans to say that she's the only consumer advocate on Capitol Hill. Bair has been aggressive about loan modification strategies as a foreclosure prevention plan to help the average homeowner. But she's not liked by everyone.

Loan Modification Obstacles: Home Equity Loans

By:: Tom Kerr - MortgageLoan.com | Mon, 01/12/2009

Home equity loans enjoyed popularity before the housing bubble burst, as Americans tapped their home equity and spent it like it was going out of style. But now, those same home equity loans are a big problem for people who want to do loan modifications to avoid foreclosure.

Helping Homeowners Refinance Mortgages takes Government Spotlight

By:: Catherine Brock - MortgageLoan.com | Mon, 01/12/2009

The foreclosure problem has stymied the feds. Treasury and Federal Reserve officials are now considering programs that would provide direct help to at-risk homeowners, as other foreclosure prevention efforts have failed to produce results.

Mortgage Crisis Silver Lining: Home Improvement

By:: Greg Mischio - MortgageLoan.com | Sun, 01/11/2009

The storm clouds over the housing market have a silver lining: Now's a great time to renovate your home. Instead of rushing out to get a home equity loan, however, consider the new trend in home improvement projects-paying cash.

Mutual Funds: Financial Crisis Victims

By:: Anders Bylund - MortgageLoan.com | Sat, 01/10/2009

When nobody trusts the stock market, good sense flies out the window. Even a small financial crisis can throw the market into fits of unreasonable up and down swings. A large one, like the great panic of 2008, can throw the safest of investments under the bus.

Is Economy Headed for a Depression?

By:: Catherine Brock - MortgageLoan.com | Fri, 01/09/2009

The U.S. is in a recession, and some predict that it will turn into the next Great Depression. Before you get worried, however, remember the protections you have now that weren't available in the 1930s.

Timing is Right for First Time Homebuyers First Mortgage

By:: Greg Mischio - MortgageLoan.com | Fri, 01/09/2009

If you're a first time homebuyer, you're probably wishing for a crystal ball. In the slumping home market, it's hard to know if you should make that mortgage loan purchase on a new house. Mortgage rates are low, and could possibly get lower. Is this the right time to buy?

Little Noise, Big Results: Successful Bailout Programs

By:: Tom Kerr - MortgageLoan.com | Thu, 01/08/2009

The public is focused on the Big Three auto companies and the controversial $700 billion Treasury bailout plan. Meanwhile, boring things, such as initiatives to financially support commercial paper, are actually making the most progress toward fixing our economy.

Is Now the Time for a Mortgage Loan Refinance?

By:: Catherine Brock - MortgageLoan.com | Thu, 01/08/2009

Mortgage rates have fallen recently on the news of greater federal foreclosure prevention efforts. If you want to achieve lower monthly expenses, now's the time to evaluate the savings you might realize with a mortgage loan refinance.

Are Home Equity Loans Good Options for Debt Consolidation?

By:: Greg Mischio - MortgageLoan.com | Wed, 01/07/2009

To consolidate debt or not to consolidate debt used to be a foregone conclusion. When housing prices were rising and home equity was plentiful, debt consolidation via a home equity loan was a no-brainer. Today's plummeting market, however, has changed the playing field.

Getting the Economy Back on Track

By:: Catherine Brock - MortgageLoan.com | Wed, 01/07/2009

The economy is a mess, and a fast recovery has become little more than a pipe dream. President-elect Barack Obama says his brain trust is working on a recovery plan, but warns that there are no easy solutions.

Are Lower Mortgage Rates Key to Success?

By:: Tom Kerr - MortgageLoan.com | Tue, 01/06/2009

To put a floor under home prices, the Treasury may take direct steps to reduce mortgage rates. Doing so could spark a real estate buying spree. On the other hand, it might have no real impact, since rates are already low and people still aren't buying.

Mortgage Fraud on the Rise

By:: Catherine Brock - MortgageLoan.com | Tue, 01/06/2009

More mortgage loan applicants are committing mortgage fraud by lying on their applications. Experts say a tight lending environment is to blame.

Taxpayers and the Bailout: From Gratitude to Rage

By:: Catherine Brock - MortgageLoan.com | Mon, 01/05/2009

Love it or hate it, the $700 billion bailout is here to stay. Tempers are flaring on both sides of the issue, as responsible homeowners feel slighted, and at-risk homeowners feel gratitude.

Upward Trend: Mortgage Loan Delinquencies and Foreclosures

By:: Tom Kerr - MortgageLoan.com | Sun, 01/04/2009

Delinquencies and defaults on mortgage loans, as well as foreclosures on homes, are soaring, despite the well-advertised efforts of politicians and economists. New waves of foreclosures and delinquencies could be up ahead, too, as the recession continues.

Risky Business-Expanding FHA Guidelines

By:: Tom Kerr - MortgageLoan.com | Sat, 01/03/2009

The FHA is enjoying a surge of popularity for its insured loans, but part of the reason is that it has relaxed its guidelines to appease bankers. Making risky loans backed by paltry amounts of home equity increases the risk to both the FHA and the American taxpayer.

Understanding Mortgage Rates by Understanding Bonds

By:: Catherine Brock - MortgageLoan.com | Fri, 01/02/2009

A look at the bond market provides insight into what moves mortgage rates up and down.

Home Prices Continue their Downward Trend

By:: Catherine Brock - MortgageLoan.com | Thu, 01/01/2009

Housing prices are still being pressured downward by foreclosure and unemployment trends.