Did you read this article http://www.cnbc.com/id/23372795? It describes how mortgage rates will stay on the higher side even though Federal regulators have eased investment caps on Freddie Mac and Fannie Mae, the biggest providers of mortgage money in the nation. It makes sense that because there is more money available to loan for home loans, that the rates will go down due to this latest influx of cash.
But no! Check this quote out from the article. "In a mortgage market where lack of liquidity has been a recurring issue in recent months, this is a positive step," said Greg McBride, senior financial analyst at Bankrate.com. "But it's unlikely to result in wholesale changes in mortgage rates overnight, and the impact will probably come at a gradual pace."
And does that "impact" mean lower rates? We'll see. All I know is that this is just another crazy chapter in this wild mortgage free for all. We've seen repricing for mortgage rates just about daily and sometimes twice a day. But today, the rates are higher for a 30 year fixed.
"We have a problem, which is that the spreads between the Treasury rates and lending rates are widening, and our policy is essentially in some cases just offsetting the widening of the spreads, which are associated with signs of illiquidity," Federal Reserve Chairman Ben Bernanke said in remarks before the House Financial Services Committee.
I'm not so sure you want your Fed Chairman to start off a sentence with the words "We have a problem". There is a problem. There are many problems. The biggest problem is that no one is sure how to solve the problem.
It's like cooking on a stove with 4 pots burning at the same time. Which one are you going to save?
If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.
Thanks for reading!
Dan Tenchall
Great Lakes Mortgage Funding
For FREE Mortgage tips, Mortgage Calculators,must have articles and much more please visit my website!
Michigan Mortgage Rates
(586) 532-0600
dan@glmf.com
Wednesday, February 27, 2008
Tuesday, February 19, 2008
And You Don't Even Get Kissed
While reading yet another article on CNBC.com (http://www.cnbc.com/id/23225822), this time about the price of a barrel of oil closing over $100, I thought about what happened to me tonight.
Usually I buy my gas at Costco. It's on my way to work and it is usually cheaper than anywhere else. For the past 2 days, that little irratating "Low Fuel" warning has come on with a dashboard warning and a ring to let you know your tank is getting low. I didn't think this was a big issue because I don't travel far to my office and I wasn't planning to travel a long way. However, when you own an Explorer, you don't need to go far to suck up the little amount of gas you do have left.
Part of the reason I didn't get gas is because I figured the gas I did have left would last and last. And the other reason, and probably the most important, it was to darned cold to stand outside to pump gas. Maybe I'll just wait until Spring.
When the "Low Fuel" warning went off again, I decided to check the warning system that most cars have now to see how many miles I had left until I was empty. "22" was the number. Then the questions start going through my head."Is it really 22 or is it less?" or "Surely, there must be a reserve number of miles they don't tell you about. Isn't there?"
So after awhile of driving to my next stop, I noticed that the "Miles Until Empty" magic number was now 12. Now it is getting dangerous. I had to stop at the nearest gas station. I had no time to shop for the best prices. I was out of my Costco protection zone. Of course, it ended up costing me $3.19/gallon which is extremely high for the Detroit area. So I just put in $10 worth and will fill it up tomorrow morning at our beloved Costco.
$100 a barrel? Does that equal $3.19/gallon?
Who knows.
If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.
Thanks for reading!
Dan Tenchall
Great Lakes Mortgage Funding
For FREE Mortgage tips, Mortgage Calculators,must have articles and much more please visit my website!
Michigan Mortgage Rates
(586) 532-0600
dan@glmf.com
Usually I buy my gas at Costco. It's on my way to work and it is usually cheaper than anywhere else. For the past 2 days, that little irratating "Low Fuel" warning has come on with a dashboard warning and a ring to let you know your tank is getting low. I didn't think this was a big issue because I don't travel far to my office and I wasn't planning to travel a long way. However, when you own an Explorer, you don't need to go far to suck up the little amount of gas you do have left.
Part of the reason I didn't get gas is because I figured the gas I did have left would last and last. And the other reason, and probably the most important, it was to darned cold to stand outside to pump gas. Maybe I'll just wait until Spring.
When the "Low Fuel" warning went off again, I decided to check the warning system that most cars have now to see how many miles I had left until I was empty. "22" was the number. Then the questions start going through my head."Is it really 22 or is it less?" or "Surely, there must be a reserve number of miles they don't tell you about. Isn't there?"
So after awhile of driving to my next stop, I noticed that the "Miles Until Empty" magic number was now 12. Now it is getting dangerous. I had to stop at the nearest gas station. I had no time to shop for the best prices. I was out of my Costco protection zone. Of course, it ended up costing me $3.19/gallon which is extremely high for the Detroit area. So I just put in $10 worth and will fill it up tomorrow morning at our beloved Costco.
$100 a barrel? Does that equal $3.19/gallon?
Who knows.
If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.
Thanks for reading!
Dan Tenchall
Great Lakes Mortgage Funding
For FREE Mortgage tips, Mortgage Calculators,must have articles and much more please visit my website!
Michigan Mortgage Rates
(586) 532-0600
dan@glmf.com
Friday, February 15, 2008
Tell Us Something We Don't Know
Today's bit of good news comes from this article from CNBC. http://www.cnbc.com/id/23187555
The article explained on how it is getting more and more difficult for borrowers to get mortgages. The guidelines from lenders regarding qualifying is getting smaller and smaller. And we are not just talking subprime, we're also including people with good credit as well. And businesses which are trying to borrow are having a hard time too.
The reason is simple. Lenders and banks just can't afford to take on anymore risk. With $140 billion already written down and an billions more on the way, what lender can take the gamble?
Here's a quote from the article "Credit got terribly easy," said Ronald Hermance, chief executive of Hudson City Bancorp Inc, a $44.4 billion asset, Paramus, New Jersey-based lender that has avoided big losses despite specializing in residential mortgage lending."
Amen, Ron. Credit was easy, but not anymore. But there are programs out there that still work for people. And I believe lenders and banks will ease up down the road but how much easing depends on the beating they take in the coming year.
My drawer full of lenders has gotten smaller as a good portion of them dropped out of the business. And now the remaining lenders in the drawer are reducing their options to the borrower.
I have to get a differant drawer.
If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.
Thanks for reading!
Dan Tenchall
Great Lakes Mortgage Funding
For FREE Mortgage tips, Mortgage Calculators,must have articles and much more please visit my website!Michigan Mortgage Rates
(586) 532-0600
dan@glmf.com
The article explained on how it is getting more and more difficult for borrowers to get mortgages. The guidelines from lenders regarding qualifying is getting smaller and smaller. And we are not just talking subprime, we're also including people with good credit as well. And businesses which are trying to borrow are having a hard time too.
The reason is simple. Lenders and banks just can't afford to take on anymore risk. With $140 billion already written down and an billions more on the way, what lender can take the gamble?
Here's a quote from the article "Credit got terribly easy," said Ronald Hermance, chief executive of Hudson City Bancorp Inc, a $44.4 billion asset, Paramus, New Jersey-based lender that has avoided big losses despite specializing in residential mortgage lending."
Amen, Ron. Credit was easy, but not anymore. But there are programs out there that still work for people. And I believe lenders and banks will ease up down the road but how much easing depends on the beating they take in the coming year.
My drawer full of lenders has gotten smaller as a good portion of them dropped out of the business. And now the remaining lenders in the drawer are reducing their options to the borrower.
I have to get a differant drawer.
If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.
Thanks for reading!
Dan Tenchall
Great Lakes Mortgage Funding
For FREE Mortgage tips, Mortgage Calculators,must have articles and much more please visit my website!Michigan Mortgage Rates
(586) 532-0600
dan@glmf.com
Tuesday, February 12, 2008
Too Little, Too Late?
The news today is that 6 top mortgage lenders and servicers have launched a new program to help homeowners in forclosure work out new affordable terms that may help them save their house (http://www.cnbc.com/id/23126374). Foreclosure proceedings are halted for 90 days while the homeowner and the forementioned lenders try to find away to get the homeowner back to making on time payments.
Hopefully, this will help some of the homeowners that might lose their house. For others, it still won't help. With housing values going down, many borrowers owe more than their house is worth. Or they have so many issues with their credit that lenders just won't take the risk. I have been telling clients and anyone who will listen to please get anyone they know who is having trouble with their mortgage payments to someone that can help. Once the borrower is in forclosure, the only one that can really help them is the holder of the note, the lender or servicer.
As always, this latest help comes to late for the thousands of former homeowners that have lost their house and their good credit already. In this case over reaction is better than slow reaction because there is still unknown thousands of foreclosures waiting to happen. Can we bring out the next program to help these people now? Because if anyone should know how bad it going to be, it should be the one holding the notes that will never get paid.
Ever hear the expression "The future is now"? How about " Now. Or there won't be a future"?
For the latest financial news, go to my home page and scroll to the bottom of the page
If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.
Thanks for reading!
Dan Tenchall
Great Lakes Mortgage Funding
For FREE Mortgage tips, Mortgage Calculators,must have articles and much more please visit my website!
Michigan Mortgage Rates
(586) 532-0600
dan@glmf.com
Hopefully, this will help some of the homeowners that might lose their house. For others, it still won't help. With housing values going down, many borrowers owe more than their house is worth. Or they have so many issues with their credit that lenders just won't take the risk. I have been telling clients and anyone who will listen to please get anyone they know who is having trouble with their mortgage payments to someone that can help. Once the borrower is in forclosure, the only one that can really help them is the holder of the note, the lender or servicer.
As always, this latest help comes to late for the thousands of former homeowners that have lost their house and their good credit already. In this case over reaction is better than slow reaction because there is still unknown thousands of foreclosures waiting to happen. Can we bring out the next program to help these people now? Because if anyone should know how bad it going to be, it should be the one holding the notes that will never get paid.
Ever hear the expression "The future is now"? How about " Now. Or there won't be a future"?
For the latest financial news, go to my home page and scroll to the bottom of the page
If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.
Thanks for reading!
Dan Tenchall
Great Lakes Mortgage Funding
For FREE Mortgage tips, Mortgage Calculators,must have articles and much more please visit my website!
Michigan Mortgage Rates
(586) 532-0600
dan@glmf.com
Friday, February 8, 2008
Another Side Of The Problem
This article came from http://www.msnbc.com/. http://www.msnbc.msn.com/id/22623144/from/ET/
The article talks about yet another problem that we have in the mortgage industry that is sometimes over looked. The appraised values of housing. Since the values of homes have declined, it is harder and harder to get a residential loan through lender underwriting. The article is originated in Minnesota, but here in Detroit we are getting hit just as hard with no end in site. The first place we start when helping a client refinace is to call the appraiser to see if we even have a chance to get the loan done.
And what makes it so bad of course, is that so many people now owe more than what their house is worth. The same lender that excepted an appraisal 2 years ago at $150,000 now is asking us to justify an appraisal for the same house at $120,000. Try telling someone that they have just lost thousands of dollars for doing nothing. And with a large number of adjustable rate mortgages out there, homeowners are not stuck between a rock and a hard place; they are being crushed between rock and a hard place.
And the same thing goes for selling a house. The article has this quote. "Values might have retreated more than the consumer might be willing to admit," said Tom Musil, director of the Shenehon Center for Real Estate at the University of St. Thomas." Which basically means that if you are trying to sell your house and you really want to sell it don't think about just reducing the price by $5K or $10K. Try more like $20K to $30K.
Who can afford to do that? But who can afford not to?
If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.
Thanks for reading!
Dan Tenchall
Great Lakes Mortgage Funding
For FREE Mortgage tips, Mortgage Calculators,must have articles and much more please visit my website!
Michigan Mortgage Rates
(586) 532-0600
dan@glmf.com
The article talks about yet another problem that we have in the mortgage industry that is sometimes over looked. The appraised values of housing. Since the values of homes have declined, it is harder and harder to get a residential loan through lender underwriting. The article is originated in Minnesota, but here in Detroit we are getting hit just as hard with no end in site. The first place we start when helping a client refinace is to call the appraiser to see if we even have a chance to get the loan done.
And what makes it so bad of course, is that so many people now owe more than what their house is worth. The same lender that excepted an appraisal 2 years ago at $150,000 now is asking us to justify an appraisal for the same house at $120,000. Try telling someone that they have just lost thousands of dollars for doing nothing. And with a large number of adjustable rate mortgages out there, homeowners are not stuck between a rock and a hard place; they are being crushed between rock and a hard place.
And the same thing goes for selling a house. The article has this quote. "Values might have retreated more than the consumer might be willing to admit," said Tom Musil, director of the Shenehon Center for Real Estate at the University of St. Thomas." Which basically means that if you are trying to sell your house and you really want to sell it don't think about just reducing the price by $5K or $10K. Try more like $20K to $30K.
Who can afford to do that? But who can afford not to?
If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.
Thanks for reading!
Dan Tenchall
Great Lakes Mortgage Funding
For FREE Mortgage tips, Mortgage Calculators,must have articles and much more please visit my website!
Michigan Mortgage Rates
(586) 532-0600
dan@glmf.com
Wednesday, February 6, 2008
Be Good To Mickey And He'll Be Good To You!
A great start to the day!
I got to read an article on one of my favorite websites, www.CNBC.com, about my favorite place in the world, Disneyworld! http://www.cnbc.com/id/23015251
The article was explaining how Disney's quarterly earnings were higher than expected. The stock slumped a bit but is now starting to recover. Let me say this right now: I AM NOT A STOCK MARKET EXPERT! And I can't tell you how Disney's other segments are doing (ABC, ESPN, etc.). But I do know Disneyworld. I go to Orlando at least 4 times a year and visit the parks at least twice that. And believe me, I know what I see.
Even in the tough economic times we have today, even when it's cold in Florida, even is it supposed to be the "slow time" at Disneyworld, the place is rockin'. It's not cheap to get in but it's worth every penny. You will never get better entertainment for your dollar. It is truly, in my opinion, the #1 tourist attraction in the world.
In the article, Matt Kaufler of Clover Capital Management said "It's a great beat, I'm most focused on the attendance level at the theme parks, as well as what their comments will be about business conditions going forward." I'm sure Matt is looking at all the charts and stats and anaylizing the numbers. Thats what he does.
But all I do is see the lines to get in the Disney Parks, the Disney mechandise bags that most every "guest" is carrying loaded with Disney shirts and trinkets, the Disney hotels which always have loads of people staying there with lots of kids waiting for their Disney dreams to come true, and the best part, the look on the faces of kids of every age when they see their favorite Disney character close up (that would be Mickey for me!) and the smiles that take up most of their faces.
Again, I'm not a Wall Street expert. And I know those "smiles" are worth millions of dollars in revenue but even better than that: trillions in happiness. And that is a product that sells itself.
If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.
Thanks for reading!
Dan Tenchall
Great Lakes Mortgage Funding
For FREE Mortgage tips, Mortgage Calculators,must have articles and much more please visit my website!
Michigan Mortgage Rates
(586) 532-0600
dan@glmf.com
I got to read an article on one of my favorite websites, www.CNBC.com, about my favorite place in the world, Disneyworld! http://www.cnbc.com/id/23015251
The article was explaining how Disney's quarterly earnings were higher than expected. The stock slumped a bit but is now starting to recover. Let me say this right now: I AM NOT A STOCK MARKET EXPERT! And I can't tell you how Disney's other segments are doing (ABC, ESPN, etc.). But I do know Disneyworld. I go to Orlando at least 4 times a year and visit the parks at least twice that. And believe me, I know what I see.
Even in the tough economic times we have today, even when it's cold in Florida, even is it supposed to be the "slow time" at Disneyworld, the place is rockin'. It's not cheap to get in but it's worth every penny. You will never get better entertainment for your dollar. It is truly, in my opinion, the #1 tourist attraction in the world.
In the article, Matt Kaufler of Clover Capital Management said "It's a great beat, I'm most focused on the attendance level at the theme parks, as well as what their comments will be about business conditions going forward." I'm sure Matt is looking at all the charts and stats and anaylizing the numbers. Thats what he does.
But all I do is see the lines to get in the Disney Parks, the Disney mechandise bags that most every "guest" is carrying loaded with Disney shirts and trinkets, the Disney hotels which always have loads of people staying there with lots of kids waiting for their Disney dreams to come true, and the best part, the look on the faces of kids of every age when they see their favorite Disney character close up (that would be Mickey for me!) and the smiles that take up most of their faces.
Again, I'm not a Wall Street expert. And I know those "smiles" are worth millions of dollars in revenue but even better than that: trillions in happiness. And that is a product that sells itself.
If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.
Thanks for reading!
Dan Tenchall
Great Lakes Mortgage Funding
For FREE Mortgage tips, Mortgage Calculators,must have articles and much more please visit my website!
Michigan Mortgage Rates
(586) 532-0600
dan@glmf.com
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