Comments for LoanBlog http://www.loanbiz.com/blog Loan Business News, Information, and Consumer Education Sat, 5 Jul 2008 17:50:11 +0000 http://wordpress.org/?v=2.3.2 Comment on Foreclosure News Dampens Improving Economic Data by richard http://www.loanbiz.com/blog/2008/06/05/foreclosure-news-dampens-improving-economic-data/#comment-564 richard Thu, 12 Jun 2008 18:10:02 +0000 http://www.loanbiz.com/blog/2008/06/05/foreclosure-news-dampens-improving-economic-data/#comment-564 Market timing is a risky, and I think fundamentally unsound, investment strategy, and it makes even less sense with regard to purchasing a home. I think you hit the nail on the head when you said that rates may be rising fairly quickly in the months ahead, but even if you and I are wrong, the general volatility of rates proves one thing -- be it housing prices or mortgage rates, conditions don't stay in one place for a while. If a family can get a house they can afford under today's conditions, it would be a shame if they missed out on that opportunity based on a guess that prices or rates might move lower still! As for options in a rising rate environment other than just getting a fixed rate mortgage, another thing to consider is getting as long a mortgage as possible. Normally, I'd advocate getting a 15-year vs. a 30-year mortgage if you can comfortably swing the higher payments, but if you believe rates are setting off on a long-term trend higher, lower rates would have more economic value if you could lock them in for a longer time. For example, if interest rates generally moved significantly higher, you could find yourself able to invest the differential between a 30-year and a 15-year payment at rates higher than your mortgage. Market timing is a risky, and I think fundamentally unsound, investment strategy, and it makes even less sense with regard to purchasing a home. I think you hit the nail on the head when you said that rates may be rising fairly quickly in the months ahead, but even if you and I are wrong, the general volatility of rates proves one thing — be it housing prices or mortgage rates, conditions don’t stay in one place for a while. If a family can get a house they can afford under today’s conditions, it would be a shame if they missed out on that opportunity based on a guess that prices or rates might move lower still!

As for options in a rising rate environment other than just getting a fixed rate mortgage, another thing to consider is getting as long a mortgage as possible. Normally, I’d advocate getting a 15-year vs. a 30-year mortgage if you can comfortably swing the higher payments, but if you believe rates are setting off on a long-term trend higher, lower rates would have more economic value if you could lock them in for a longer time. For example, if interest rates generally moved significantly higher, you could find yourself able to invest the differential between a 30-year and a 15-year payment at rates higher than your mortgage.

]]> Comment on You and Your Lender: The Start of a Beautiful Relationship by lfreeman http://www.loanbiz.com/blog/2008/06/02/you-and-your-lender-the-start-of-a-beautiful-relationship/#comment-547 lfreeman Mon, 09 Jun 2008 20:47:58 +0000 http://www.loanbiz.com/blog/2008/06/02/you-and-your-lender-the-start-of-a-beautiful-relationship/#comment-547 You are right. If you aren't comfortable with your lender you need to find another one. There are many out there who are professional, knowledgeable, and actually care. If yours isn't, kick him / her to the curb and find one you like and trust. You are right. If you aren’t comfortable with your lender you need to find another one. There are many out there who are professional, knowledgeable, and actually care. If yours isn’t, kick him / her to the curb and find one you like and trust.

]]> Comment on Foreclosure News Dampens Improving Economic Data by Kay http://www.loanbiz.com/blog/2008/06/05/foreclosure-news-dampens-improving-economic-data/#comment-508 Kay Thu, 05 Jun 2008 21:49:15 +0000 http://www.loanbiz.com/blog/2008/06/05/foreclosure-news-dampens-improving-economic-data/#comment-508 Given the general market indicators, it seems that the rates may be rising fairly quickly in the upcoming few months. Can you provide any suggestions on how to "time the market"? Also, what other options should one consider besides just getting a fixed rate mortgage? Given the general market indicators, it seems that the rates may be rising fairly quickly in the upcoming few months. Can you provide any suggestions on how to “time the market”? Also, what other options should one consider besides just getting a fixed rate mortgage?

]]> Comment on You and Your Lender: The Start of a Beautiful Relationship by tnaylort http://www.loanbiz.com/blog/2008/06/02/you-and-your-lender-the-start-of-a-beautiful-relationship/#comment-494 tnaylort Tue, 03 Jun 2008 18:19:15 +0000 http://www.loanbiz.com/blog/2008/06/02/you-and-your-lender-the-start-of-a-beautiful-relationship/#comment-494 I would also add that a lender should be more than willing to answer any of your questions without making your feel like a dumbass. Its easy to feel intimidated by the process--I have been--twice. You don't need a lender who makes the process even more stressful. I would also add that a lender should be more than willing to answer any of your questions without making your feel like a dumbass. Its easy to feel intimidated by the process–I have been–twice. You don’t need a lender who makes the process even more stressful.

]]> Comment on Mortgage Rates Move Upward as Cycles Get Out of Synch by richard http://www.loanbiz.com/blog/2008/04/24/mortgage-rates-move-upward-as-cycles-get-out-of-synch/#comment-444 richard Thu, 29 May 2008 19:59:39 +0000 http://www.loanbiz.com/blog/2008/04/24/mortgage-rates-move-upward-as-cycles-get-out-of-synch/#comment-444 Basically, the last paragraph means that people often expect mortgage rates to fall in a weak economy, but they shouldn't count on that this time, since inflation will create upward pressure on rates. Note that inflation has, in fact, risen since I first wrote this blog. Basically, the last paragraph means that people often expect mortgage rates to fall in a weak economy, but they shouldn’t count on that this time, since inflation will create upward pressure on rates. Note that inflation has, in fact, risen since I first wrote this blog.

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