Typically, higher credit scores get lower mortgage rates and access to a wider array of mortgage products. Extent of Indebtedness comprises 30% of a credit score and is the second largest component in the credit scoring model. In plain-speak, Extent of Indebtedness is: "How close is this person
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04/10/2008
For the budget-aware, buying a new home involves calculating how new PITI payments will impact the household budget. For in-town moves, the math is fairly simple -- consider your existing budget and replace your old housing cost with your new housing cost. For non-local moves, however, the budget
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04/10/2008
Every two years, the Jump$tart Coalition issues a "personal finance" exam to high school seniors. The test highlights the importance of personal financial literacy among America's youth and comes at an especially important juncture. Many experts -- including Fed Chairman Ben Bernanke -- believe
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04/10/2008
In three weeks, the Federal Open Market Committee will meet again and markets anticipate another cut to the Fed Funds Rate. Based on data compiled by the Federal Reserve Bank of Cleveland at the close of business yesterday, traders put the probabilities of the Fed's next move at: 62 percent chan
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04/10/2008
News sources like to use the term "credit crunch" in describing the U.S. economy, but they rarely define what a credit crunch is and what it means for Americans. A credit crunch is when the amount of available loans suddenly decreases over a very short period of time. Usually, it follows a perio
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04/10/2008
Home shoppers know to consider the impact that a new home will have on their household budget and that is called keeping your eye on the ball. Unfortunately, most shoppers are keeping their eye on the wrong ball.The proper way to answer the "How Much Home Can I Afford" question is to think in ter
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04/06/2008
Did you know:After 30 years, a 30-year mortgage term is paid in full.After 30 years, a 40-year mortgage term has 57% of the original borrowed amount remaining.After 30 years, a 50-year mortgage term has 81% of the original borrowed amount remaining.Of course, it's not all bad for the holders of l
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04/06/2008
More commonly called "points", discount points are up-front fees charged by mortgage lenders in exchange for lower mortgage rates. The cost of one point is one percent on the loan size and discount points appear on Line 802 of the HUD-1 Settlement Statement.As a general guideline, each point paid
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04/06/2008
Most lenders, when figuring the borrower's escrow account look for 14 months of reserves. The key in figuring how many months will be collected at closing will depend on when the first mortgage payment will be due and when the renewal dates of their insurance policy is and when the taxes, if any
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04/06/2008
For the third month in a row, the economy shed jobs, suggesting that the U.S. is in a recession.March's monthly loss of 80,000 jobs is the largest since March 2003 and follows January and February's losses of 76,000 each. The weak data edged mortgage rates lower on Friday. The connection between
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04/06/2008
