The scope of the problems that exist in the United States Mortgage market are huge. Enormously, mind-bogglingly, “How Big Is Space?” type huge. Yet, the problems are almost entirely on a retail level, when one provider works with one consumer. The system works, and it works extremely well. Consider: Most consumers in Europe or any …
Continue reading “Virtues of the Housing and Mortgage Market in the US”
One of the things that always seems to be aiming to confuse mortgage consumers is advertising based upon whether the loan is fixed rate, and for how long. First, I need to acquaint you with two concepts: amortization and term. The term of the loan is nothing more than how long the loan lasts. How …
Continue reading “Amortization: Fixed rate, Balloon, ARM and Hybrid Loans”
I just got a google search where the question asked was “What if the mortgage is recorded in the wrong county?” I’ve never actually seen this (and San Diego County, once upon a time, included what is now Riverside, Imperial and San Bernardino counties), but if it’s the mortgage on your loan, no big deal. …
One of the things you get with every mortgage loan quote is an APR, or Annual Percentage Rate. There is even its own special form, the federal Truth-In-Lending (TILA) form. This was mandated by congress back in the early 1970s as a way to give consumers some way to compare between competing loans of equal …
(Mild language warning applies, but nothing you can’t say in prime time broadcast TV) When I was twelve years old, my uncle Robert introduced me to the writings of John Masters. John Masters was an officer in the Indian part of the British Army in the waning days of the Raj, starting in 1934 and …
I’ve seen some fairly intelligent people completely fail to understand the value of estate planning, how easy it can be, and what it can accomplish. To start with, there are some issues that happen when you die. The first is probate. This is a process whereby the state approves the distribution of your assets. Whether …
I’ve been to two conferences this week. The stuff for the other one is more important and is going to have to simmer for a little while longer before I’m ready to write an article on it, but the other is a “direct from the providers” seminar on credit reports and credit scores. Some of …
Continue reading “Credit Reports and Credit Score Manipulations”
from an email: On a related note, I hope you might have some advice for us. My husband and I just sold our condo. But we are NOT buying at the moment. Instead we are renting. (Not sure where we are going to be 6 months out and buying does not sound like a good …
Continue reading “Credit Lines, Number and Length of Time Open”
Asymmetrical Information has a good article about the political and budget problems faced by pensions everywhere. It touches upon the treatment of annuities, one of the most popular investment vehicles there is. Most defined contribution pensions (e.g. 401k, among others) in the United States are actually funded by variable annuities. Annuities currently have in interesting …
One of the questions we ask all the time is whether to do your financing as one loan or two loans. Until comparatively recently, one loan was the default option, but people have been learning that splitting their home financing up into two loans can save them significant amounts of money. There is significant resistance …
