In the last century, the required down payment for a home purchase changed significantly, decreasing from 50% of the price to 20% to as little as $0. Recently, though, banks have started to ask for more. For most homebuyers, without a special deal through an organization like Nehemiah, 3% inves
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04/04/2008
In the past 10 years, total mortgage balances (1995 to 2004 and 2004-2007 see section L.217) in the United States balooned from $5.128 trillion in 1997 to $14.557 trillion in 2007. That's an increase of over 250%! Where did all that money come from? In that time, the economy didn't grow by near
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03/06/2008
I got out of the house early this morning to visit my poling place, and the office of Exit Realty Firm right next door, only to find out that my poling place had moved! The fire station at the corner of Branch Ave. and North Main St. was clearly not open for business as a voting location. Fortun
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03/04/2008
Last week was just what many loan officers and borrowers were looking for: a week of sharp improvements in rates. What we saw was a substantial "flight-to-quality" as investors shied away from stocks and moved their money into safer treasury bonds. This was triggered by several reports indicati
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03/03/2008
There has been a lot of talk lately about the resurgence of the FHA loan program. It meets many of the needs of borrowers who may have qualified for sub-prime mortgages. Here are some basic guidelines to consider with the FHA option for your clients:FHA requires some credit: In spite of the not
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03/03/2008
The spread between 30-year fixed mortgage rates and 10-year treasury yields hit its highest point in over a year in the week of February 25th, at 2.52%. Mortgage rates averaged 6.24% while treasuries closed Thursday at 3.72%. I have been tracking the spread between 10-year treasury yields and 3
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02/29/2008
(WARNING: this article is long and detailed, and ends with a lot of math. If you want something short and mathless, please visit my article about cell phone plans getting cheaper.)Last night, I lectured my Introduction to Financial Services class regarding several topics, one of which was the re
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02/27/2008
I attended the Sovereign Bank Economic Outlook Breakfast this morning at the Providence Westin. This is the 3rd year I've attended this event, and each year seems to bring a larger crowd. The event's purpose is to unveil the results of a survey conducted in the 4th quarter of the year among con
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02/27/2008
CNN this morning reported on a new "conundrum" faced by the Federal Reserve. Industry veterans will recall 2-3 years ago when then Fed Chief Alan Greenspan noted the unfathomable disconnect between bond yields and Fed rate moves. Now Ben Bernanke is faced with the prospect of his moves having a
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02/25/2008
Last week, we received word from one of our lenders regarding their interpretation of the new Jumbo mortgage rules included with the economic stimulus plan. Here's what will be happening:HUD will release Median Home Prices for the country within the next 30 daysConventional limits will increase
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02/25/2008
