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Tag: interest

Mortgage Rates and Financial Repression

Mortgage Rates and Financial Repression

Financial repression is a newly-emerging buzzword, the idea that by forcing down interest rates the government is scooping up funds that would have gone to the private sector. Why would the government do this? To paper over the size of the federal deficit and avoid a financial collapse. If this sounds like a strange idea […]

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Why The Mortgage APR Is Too Low
By September 29, 2014 1 Comments Read More →

Why The Mortgage APR Is Too Low

The mortgage APR is generally higher than the nominal interest rate but is it high enough? The answer is “no” and here’s why: One way to look at the APR — the annual percentage rate — is to have an interest level of 4.2 percent and points and fees of $5,000. In this situation — […]

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Why The Fed Doesn’t Want To Raise Mortgage Rates

Why The Fed Doesn’t Want To Raise Mortgage Rates

If you’re wondering where mortgage rates are headed you’re not alone. It used to be that mortgage rates reflected supply and demand but that’s no longer the case. The Federal Reserve is now spending $85 billion per month to purchase mortgage-backed securities ($45 billion) and U.S. Treasuries ($40 billion), thus holding down interest rates for […]

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Are Real Estate Mortgages Easier To Get?

Are Real Estate Mortgages Easier To Get?

The latest loan officer survey from the Federal Reserve says financing is easier to get. It also says mortgages are harder to get. I say the subjective feelings and fanciful intuitions recorded by the Fed are wrong. Let me explain why: “Domestic banks, on balance, reported having eased their lending standards and having experienced stronger […]

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Will Higher Mortgage Rates Kill Real Estate?

Will Higher Mortgage Rates Kill Real Estate?

There’s no doubt that mortgage rates are on the rise. Freddie Mac says interest levels for 30-year fixed rate loans have risen roughly .6 percent since the start of May and there’s little doubt that this week’s rate announcement will be well above 4.0 percent. So, will higher mortgage rates kill the real estate market? […]

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Have The Keys To Real Estate Wealth Changed?

Have The Keys To Real Estate Wealth Changed?

Have the keys to great wealth changed in recent years, especially when it comes to real estate? The anwer is plainly yes. When the advice and observations below were first published in 1998 the idea was that they had a certain long-term perspective. The keys remain valuable today but one has notably changed: Savings. The […]

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Mortgage Debt Relief Remains in 2013 Cliff Bill

Mortgage Debt Relief Remains in 2013 Cliff Bill

The final tax agreement approved late last night between the House and the Senate is not online, but as of early Tuesday morning the American Taxpayer Relief Act of 2012 (H.R. 8) included tax forgiveness for unpaid mortgage debt. Without the continuation the debt forgiveness policy would have ended December 31st. Until the Mortgage Forgiveness […]

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RGIII — Race, Football & Foreclosures

RGIII — Race, Football & Foreclosures

Washington Redskins quarterback Robert Griffin III has been much in the news during the past week, first for an on-field knee injury and then because of questions regarding his group identity. ESPN sports commentator Rob Parker, who is African-American, wanted to know whether Griffin was “a brother or a cornball brother?” “We all know he […]

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Why Mortgage Rates Will Fall In 2013

Why Mortgage Rates Will Fall In 2013

For much of the past year mortgage rates have bounced around at or near record lows. But as we head into 2013 will mortgage rates go higher or fall? Just last week Freddie Mac reported that “the 30-year fixed-rate mortgage has averaged below 4.00 percent all but one week in 2012, while the 15-year fixed-rate mortgage […]

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Yes, FHA Loans Can Be Assumed

Yes, FHA Loans Can Be Assumed

During the past six years nearly 30,000 FHA loans have been assumed, a strategy which could help a lot of people buy and sell houses. In fact, FHA assumption activity is on the rise, with annual totals in 2011 several times greater than just a few years ago. It used to be that mortgages were […]

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