Quantitative Easing: Rate Recap & Timeline

For the past 2.5 years, the Fed has run two rounds of rate stimulus known as quantitative easing (QE), which is bond buying to drive prices up and rates down. QE2 ends June 30, so here’s a chart recapping 30yr fixed rates from crisis peak to now. It’s labeled to show how QE1, QE2, and

The Basis Point: brought to you by Julian Hebron

No, that title isn’t a blatant search optimization tactic (though it can’t hurt). It’s a subject header to test TheBasisPoint’s new email machine. To all mail newsletter readers over the years: I want thank you, and let you know that me and my amazing team will now bring you market commentary using TheBasisPoint and its

How To Get A Mortgage: For New AND Experienced Borrowers

Here are some alarming results from an April 2011 Zillow/Ipsos study: 55% of homebuyers don’t know that rates change throughout each day, 37% think getting pre-qualified means they’ve secured financing, and 44% said they’re not confident in their mortgage knowledge nor the mortgage process. So let’s review mortgage basics for new buyers and especially experienced

Biweekly Mortgage Payment Plans: Ripoff Or Smart?

If you’re a homeowner with a mortgage, you’ve probably seen promotions for biweekly mortgage payments come from your lender or a third-party company. Promos usually lead with something like “How would you like an extra $59,314 in your bank account?” or “Pay off your 30yr mortgage five years early!” Let’s look past the promos to

Future of Mortgages, part 2: Is 30-Year Fixed Dead?

Currently 95% of home loans are controlled by the government using Fannie Mae, Freddie Mac, and FHA, but U.S. Congress is reviewing 3 options to overhaul home financing in this country. Below we examine how this will materially change loans and rates available to you in the future. This is part 2 in a series,

2011 Rate Outlook

Before presenting rate predictions for 2011, it’s worth noting that all forecasts are subject to the whims of highly volatile rate markets. What follows is an explanation of how rate markets work, how rates have behaved since the financial crisis began in 2007, then the outlook for this year. All rates discussed are 30yr fixed

Alert: FHA Loan Cost Increase October 4

FHA Loan Fee Increases: Hundreds Per Month For Borrowers Effective for FHA loans October 4, 2010 or later, FHA mortgage insurance (MI) will be increasing on new loans—existing FHA borrowers are unaffected. Using money from MI premiums, the FHA helps troubled borrowers and backs lenders if loans go into foreclosure. Mounting foreclosures in recent years