Adjustable Rate Mortgage Blog April Archive

California mortgage defaults rise while foreclosures go down

04/29/09 22:48

More Californians are defaulting on their mortgage payments today than anytime in the last 20 years. This only shows that the crisis is still reclaiming new victims despite the viewed idea of slow recovery.

However, according to records, fewer homes are getting repossessed as well, primarily because of moratoriums imposed by banks and institutions like Freddie Mac and Fannie Mae

Link: Mortgage defaults rise but homeowners stay put - Los Angeles Times

What to Consider Before Taking Out a Reverse Mortgage

For those who do not know, a reverse mortgage is a program available for senior citizens and is used to release the home equity in one lump sum.

If you believe you are qualified for this kind of loan, don't jump in immediately. You still have to ask a number of questions to ensure that you are only getting a good deal. Here are some good points to consider when taking a reverse mortgage from MarketWatch.com

Link: What to ask when considering a reverse mortgage - MarketWatch

Fixed-rate and adjustable-rate interest margins narrow down

It used to be that fixed-rate loans are much more expensive than adjustable-rate ones. However, when the mortgage market collapsed and consumers looked at the latter market sourly, things begun to change. Now, the gap has narrowed down to a gap that Freddie Mac declared as the slimmest since the firm started to gather mortgage data in 1984.

Unfortunately, not everyone is entitled to afford this very cheap loans.

Link: Mortgage-Rate Patterns Sway Amid Changing Landscape - washingtonpost.com

UK mortgage market dysfunctional, accoring to Council of Mortgage Lenders

The UK mortgage market is still largely dysfunctional, according to the Council of Mortgage Lenders (CML). However seasonal increase in mortgage demand may show signs that the market may be nearing stabilization. It also retracked by saying that mortgage arrears and home reposessions still remain at controllable levels despite the global financial crisis.

Link: BBC NEWS | Business | Mortgage market 'dysfunctional'

Increasing Mortgage Applications

Business Journal Phoenix reported that there were a growing number of Americans applying for new mortgage on the past few weeks according to the data of the Mortgage Bankers Association. They've measured the loan application volume (market Composite Index) 1172 on the previous week which is 5.3 percet higher a week earlier and also 77 percent higher than same week last year. More on the link below.

Link: Mortgage applications on the rise - Phoenix Business Journal:

Foreclosure rates up 126 percent

RealtyTrac - a company who collects foreclosure data across the county, says that record high foreclosure listing have spiked up to 126 percent specially in the Cumberland County. About 1,068 properties listed in foreclosure in which 800 of it are in default. The continuing increase is attributed to a number of factor like the recent layoffs and increasing rates up to 12 percent on adjustable mortgages. M

Link: County foreclosure rate up 126 percent - NJ.com

Deduction Cuts on Mortgage Interest

There is a new federal proposal that would whack off the mortgage-interest deduction for the lucky ones earning more than $250,000. The proposal would slash the tax rate to those high-earners so they could allocate the funds to health-care. The 33 to 35 percent income brackets taxpayers can have mortgage reduction interest by 33 to 35 cent which also means that interest reduction of $3,500 would shrink to $2,800.

Link: Mortgage-interest deduction cuts proposed but not likely -- chicagotribune.com