Mortgages
« Previous EntriesSad Fact: Some People Are Just Idiots
Monday, April 14th, 2008Lily over at TheHonestDollar alerted me to an interview with a couple who’s home is in foreclosure. If this couple is any indication of America’s view of debt, this country is in BIG TROUBLE!
Here’s the part of the interview that made me cuss:
The Sinclairs say they never meant for this to happen, but Esmeralda [...]
More Thoughts on the Housing Mess
Friday, April 11th, 2008I’m getting tired of hearing about the housing mess. I’m especially getting tired of headlines like these:
Housing bill doesn’t help those in most trouble
Maybe these bills don’t help those who need the help the most because they are “unhelpable” (I’m pretty sure that’s not a word). For the record, I’m against even helping [...]
This is Pure Genius
Wednesday, April 9th, 2008Here’s a novel idea:
1. Buy a house.
2. Finance it with an adjustable-rate mortgage (ARM), interest-only ARM, or some other mortgage that will get your initial payment down so you can afford the house.
3. Don’t worry about the mortgage reset because the value of the home will continue to increase and you can [...]
Big Surprise: Mortgage Brokers Don’t Like the Fed’s Plan
Monday, April 7th, 2008I saw this tonight on Marketwatch:
The Fed has proposed prohibiting brokers from receiving yield-spread premiums, sums lenders pay to brokers for higher-rate loans, unless the broker has entered a written agreement with the consumer disclosing total compensation. The written agreement would occur before the consumer applies for the loan or pays any fees.
Brokers reap outsized [...]
Question From a Reader: What to do With My Mortgage?
Monday, February 4th, 2008I received the following email from a reader over the weekend:
Hey JLP,
Got a question for you. I just got my most recent Consumer Reports, and they had a blurb in there about paying off your mortgage early vs. taking that money and throwing it in an index fund. Their claim is that over [...]
Another Way Responsible Borrowers Could Get Screwed: Property Taxes
Monday, January 28th, 2008I think the handwriting is on the wall for citizens of areas facing lots of foreclosures. If municipalities are left with lots of vacant properties due to foreclosures, they will have to cut expenses, raise property taxes, or a combination of both in order to meet their budgets.
Remember, there are two parts to the [...]
Stupidity Got Us Into This Mortgage Mess
Monday, January 21st, 2008This is the introductory paragraph to an article in the February 2008 issue of Money (sorry no link to the actual article):
Luis and Kelly Madera have done everthing they can to save their house. They refinanced most of the $550,000 they owed on a risky, adjustable-rate home loan to a conservative 30-year fixed rate [...]
The Three Root Causes of the Mortgage Crisis
Thursday, January 17th, 2008Here’s the opening paragraphs of the main front page story in today’s Wall Street Journal (emphasis mine):
To understand a root cause of the financial crisis shaking global markets, take a look at Kevin Schmidt’s paycheck.
Mr. Schmidt arranges mortgages in Shreveport, La. He earns his money upfront, taking a percentage of each loan once papers are [...]
What Does the Future Hold For Countrywide?
Tuesday, January 8th, 2008Check this out:
You’re looking at the one year chart for Countrywide Financial (CFC). It’s not a pretty site. It has gone from over $45 per share to $5.47 (today’s closing price) over the last year. Today alone it dropped over 18% on fears that it might go into bankruptcy. The company [...]
Now Paulson is Talking About Helping Prime Borrowers Too!
Tuesday, January 8th, 2008Is there no end to the generosity of Hank Paulson?
According to, Will More Homeowners Get Help With Rates? ($), in today’s Wall Street Journal:
Treasury Secretary Henry Paulson suggested the mortgage industry should consider greatly expanding its White House-backed program to ease loan terms for millions of financially troubled homeowners whose mortgages are due to rise.
Mr. [...]