Tag Archives: home equity lines

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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The Biweekly Mortgage

Is it worth paying a fee to pay off your mortgage biweekly? Most mortgage payments are monthly, but some lenders are now advertising their biweekly mortgage repayment plans. By paying off your mortgage more quickly, you’ll save a ton on … Continue reading

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Interest Rates Remain Near Zero

Fed chair Ben Bernanke is about to be confirmed by the US Senate to a second term. The Fed says that prospects for the economy are looking up. Despite this, they plan to keep interest rates near zero. Easy money … 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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Cash Poor?

A common way to get some financial liquidity is to take out a home equity line of credit. With many investments earning less, many seniors are considering taking out reverse mortgages or the like. Other options include tapping your life … 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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Reducing Foreclosures Through Government Programs

I still have not heard any good answer to my question about how subsidizing irresponsible behavior (buying more house than you can afford) won’t lead to more irresponsible behavior? What about those who’ve played by the rules and have paid … Continue reading

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Why We Can’t Just Snap Out Of The Mortgage Mess

Alan Zibel writes about the dramatic decline in housing prices. Why did this happen? Because real estate speculation caused millions of homeowners to think of their home as an ATM machine. When the value of their home plummeted, they lost … Continue reading

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