Monthly Archives: September 2008

Yesterday, the stock market suffered its largest one-day point loss since September 17, 2001, and its sixth-largest point loss in history. Not everyone got punished, however. Two groups of people, in particular, welcomed yesterday’s losses: Home buyers out shopping for … Continue reading →

In a week overdone with market-altering news, conforming mortgage rates shed a quarter-percent overall last week. It was the third straight week in which rates improved. The biggest story, by far, was the government’s takeover of Fannie Mae and Freddie … Continue reading →

On all principal + interest home loans, the first few years of payments include a lot more money going to interest than to principal. This is because mortgage repayment schedules are front-loaded with interest, meaning large-volume principal reduction won’t occur … Continue reading →

Conforming mortgages are limited by loan size, based on “typical” housing costs around the country. Since 1980, as home prices have increased, so have conforming loan limits. The current conforming limit on a single-unit property is $417,000. Earlier this year, … Continue reading →

In its last act as a semi-independent company, Fannie Mae altered mortgage guidelines for real estate investors last Friday. It was Fannie’s 22nd update this year. The first part of the guideline change limits the number of properties owned by … Continue reading →

When comparing two investments with equal risk, a rational person will choose the investment with a higher rate of return. This behavior is called Risk Aversion and is a basic tenet of personal investing. An off-shoot of Risk Aversion is … Continue reading →

Mortgage markets improved last week on Hurricane Gustav’s less-than-expected damages and a strengthening U.S. dollar. Even factoring in Friday’s 0.125 percent run-up on most mortgage products, rates improved overall. It’s the second straight week in which mortgage rates improved. But … Continue reading →

On the first Friday of every month, the government releases its Non-Farm Payrolls report. More commonly called the “jobs report”, the two-page analysis examines the nooks and crannies of the U.S. economy to see which industries are hiring and which … Continue reading →

A home inspection is a complete, top-to-bottom, visual check-up of the structure and systems of a house. It is meant to be an objective determination of a home’s condition. A home inspection usually takes 3-6 hours to complete, depending on … Continue reading →

Mortgage rates are hugely important to household budgets. Lower mortgage rates free up household cash for spending and long- and short-term saving. Higher mortgage rates, of course, do the opposite. Unfortunately, it’s impossible to predict the future of mortgage rates … Continue reading →