Monthly Archives: December 2007

Private mortgage insurance (PMI) is insurance for the mortgage lender in the event of homeowner default. PMI helps the lender recover its costs and losses after foreclosing and selling a repossessed home. PMI rates vary by loan type, loan size, … Continue reading →

The headlines say that home prices are down 6.7 percent from a year earlier. It’s important to recognize that this is a national figure. “National” has nothing to do with real estate. Real estate is local. The chart above is … Continue reading →

During the Holiday Season, economists watch consumer spending intently because it makes up two-thirds of the U.S. economy. When spending is stronger-than-expected, it can lead to inflation which pushes mortgage rates higher. So far this season, mortgage shoppers should be … Continue reading →

Mortgage rates moved away from the best levels of the year last week with force, and this week could resemble last. Markets have been grappling with conflicting signals about the U.S. economy. On one hand, there is evidence of inflation … Continue reading →

After Thursday’s passage of the Mortgage Forgiveness Debt Relief Act of 2007, foreclosed homeowners have one less worry: taxes. When a homeowner defaults on a home loan, a mortgage lender will sometimes “forgive” the debt owed. One example is when … Continue reading →

The resurgence of private mortgage insurance continues — if only because it’s aided by Congress. For eligible homeowners, lawmakers voted to extend the tax-deductibility of PMI through 2010. The law was previously scheduled to expire at the end of 2007. … Continue reading →

Even if you’ve been recently pre-qualified (or pre-approved) for a mortgage, it may be prudent to get “re-approved”. The mortgage industry is changing quickly; being prepared beats the alternative. Recently, mortgage lenders have made adjustments in what they will lend, … Continue reading →

For most Americans (but not all), mortgage interest is tax-deductible in the year in which it was paid. With some advance planning, therefore, a homeowner can increase his 2007 tax deductions by paying additional mortgage interest while the calendar still … Continue reading →

Last week proved once again: The Fed does not control mortgage rates. On Tuesday, after the Federal Open Market Committee lowered the Fed Funds Rate by 0.250%, mortgage rates began an ascent that carried all the way through Friday’s close. … Continue reading →

In its biggest month-over-month jump since 1973, the Producer Price Index rose 3.2 percent in November. PPI is like a “cost of living” measurement for consumer, except that it applies to business. PPI measures how expensive it is to produce … Continue reading →