Tag Archives: home equity lines of credit

Mortgage Rates Plunge

Part of the cause of the housing boom was low interest rates. They encouraged many people on the margins to take a risk and to take out a mortgage. Because mortgage interest is deductible, many people took out home equity … Continue reading

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The Coming Revolution In Home Financing

The recent commission on reducing the deficit recommended doing away with the mortgage interest deduction. This would make housing more expensive on a relative basis to other expenses (though overall home prices should diminish because of such a move). Lenders … Continue reading

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Federal Reserve Expects High Unemployment Indefinitely

This is bad news for housing values. If people don’t have jobs, they can’t afford to pay for mortgages. This reduces demand for homes, which drives down prices, drives down housing values, ending people HELOC (home equity lines of credit), … Continue reading

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Recession Reshapes California’s Housing Market

Americans are no longer thrilled to extend their debts. For the last six months, the amount we owe on credit cards, auto loans and other forms of consumer loans dropped, according to the Federal Reserve. That’s the longest decline since … Continue reading

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Using FHA & VA Financing To Buy Foreclosures

Here are some tips from the book Foreclosure Myths: You can use government-backed financing to buy a foreclosed home if you play by the rules: * FHA and VA financing requires you to live in the home * The process … Continue reading

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The Short Sale

From the Washington Post, June 15, 2008: Here’s what’s really happening with short sales: All too often, they fall short of the finish line. A short sale means a sale that falls short of the amount owed on the mortgage. … Continue reading

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Credit Card Companies Reducing Borrowing Limits

NEW YORK (AP) — Just as Americans grow more reliant on credit cards to help pay monthly bills, they’re being hit with a one-two punch: Card companies are reducing borrowing limits for tens of thousands of consumers, which then can … Continue reading

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What’s A Cash-Out Refinancing Loan?

Cash-Out Refinancing means refinancing your house for more than you owe, so you get a pack of cash. Here’s an excellent analysis of cash-out refinancing from bankrate.com: Homeowners today treat their houses like piggy banks, readily transforming their equity into … Continue reading

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Getting Into Debt To Stay Afloat

A wiser move would be to reduce expenses. Instead Americans are turning to different loans. Can’t pay your mortgage? Turn to a credit card. Not a good long-term strategy. Not such a good short-term one either. What’s causing this trouble? … Continue reading

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It’s Getting Tougher To Borrow Money

The Boston Globe reports that even borrowers with great credit scores are having a tough time getting the loans they want. Lenders are increasingly cautious and conservative. They want higher down payments and higher credit scores. An applicant has to … Continue reading

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