Your Questions About Mortgage Rates News

George asks…

Why are so many people losing their homes? How can I avoid this?

My fiance and I will soon both be turning 21. As young people looking to own a home within the next five years, what good advice can be given?

Every day on the news we hear about more people losing their homes, and every week in the paper it seems that there are more homes being foreclosed.

Is this situation the fault of the buyers?
What exactly is happening to cause these people to lose their homes? Is it that they’re not getting fixed rate mortgages?

My fiance and I both have a small sum of money saved for a down payment, our bank (Sikorsky Credit Union) offers good mortgage rates and requires a 5% downpayment for fixed rate mortages. We intend to have that 5% + more.

Asside from buying realistically (staying within our limits), can chosing a fixed rate mortgage prevent us from being one of the many people who lose their homes??

Any advice would be great
Just for some background :
We’re living in Connecticut (one of the most expensive places to live in the USA).
We’ve decided to go right from living with my parents to buying. We’ve looked around at rents and most of them are as much as a mortgage payment would be! His mom is a real estate agent and more than willing to help us.

I am almost finished with my college degree and have been working at the same location for 4 years (since I was 16). I also substitute teacher on my days off for some extra income.
My boyfriend has had a job at a privat airport for two years and now that he has finished with school he has started a job working for a major company (starting with a higher salary than most people our age). Both of us have stable and steady income.

We’re not planning to rush into anything so before going to get pre-approved we’re doing our “homework”

admin answers:

By “doing your homework” you’re already one step ahead of most.

The blame for the current mortgage crisis does not fall squarely on any one shoulder in particular, dishonest loan officers & ignorant borrowers play an equal part.

The mortgage “Type” really doesn’t make a difference if a borrower can’t afford the payment. A Fixed mortgage offers a little more security in that it’s rate will never adjust and your P&I (Principle & Interest) payment will never increase.

Credit unions typically offer pretty good rates but if you are putting down anything less than 20% you will most likely have to pay PMI (Mortgage Insurance) which will be tacked onto your monthly bill…. You can finance up to 97.75% in an FHA first time homebuyer loan and their PMI is at a huge discount over what you would pay elsewhere…..

Putting money down on a house is great, IF you can afford it…. Just don’t put down everything you have. Leave yourself a cushion for the little things you will want/need to get done immediately after moving in. When I bought my first home, it looked perfect…. We didn’t even think we were going to need to paint… Once the owners got all their stuff out though, it was a different story….. We wound up painting everything and then had to have a heating element in the hot water heater replaced…..thank god we held a little back and were able to pay for everything….

Homeownership is great and it sounds like you’ve got a good head on your shoulders….you will be fine. All renting does is pay someone else’s mortgage anyway…. Good Luck!!

Susan asks…

What’s good right now in the news?

Thousands perished in an earthquake and hurricane…many lost everything in a raging forest fire…war in the middle east continues…the price of gas keeps rising…mortgage rates plummet…

Are there any good news that actually outweighs the bad?? Somebody please tell me.

admin answers:

A donkey in rural Tennessee has learned how to surf.

Maria asks…

Am I reading this article about the proposed tax changes correctly?

http://news.yahoo.com/s/ap/20101111/ap_on_bi_ge/us_cutting_deficits

-you can read or maybe you already have read all of it but i’d like to focus on just this one part;

For individuals and families, the proposal would eliminate a host of popular tax credits and deductions, including the child tax credit and the mortgage interest deduction. However, it would significantly reduce income tax rates. The top rate would drop from 35 percent to 23 percent.

Is it saying that you will no longer get a $3,650 tax deduction for humping your wife with a result AND that if your credit was bad and had to take a high mortgage rate that you can’t deduct it?

42._______EXEMPTIONS. If line 38 is $125,100 or less and you did not provide housing to a Midwestern displaced individual, multiply $3,650 by the number on line 6d. Otherwise see page 37.

SOURCE; 2009 U.S. Individual Income Tax Return form 1040

can i be dreaming?

admin answers:

Losing my mortgage interest deduction will actually INCREASE my taxable income. How is that good?

Joseph asks…

How about you, do you think America will REALLY elect a socialist President in 9 days?

I frankly don’t think so in spite of all the negative news.

Socialistic plans and ideas kill a nation, AKA Jimmy Carter era. 20% home mortgage rates, unemployment, other countries over-running our embassy’s, etc.

Only McCain has the perceived character by our enemies to FIGHT. Hussein Obama’s “I can talk to our enemies” ideology is, well, naive to say the least.

What do you think? I just don’t see McCain loosing to a socialist with a golden speech.

admin answers:

Nope…Obama’s only hope is ACORN.

James asks…

How about you, do you think America will REALLY elect a socialist President in 9 days?

I frankly don’t think so in spite of all the negative news.

Socialistic plans and ideas kill a nation, AKA Jimmy Carter era. 20% home mortgage rates, unemployment, other countries over-running our embassy’s, etc.

Only McCain has the perceived character by our enemies to FIGHT. Hussein Obama’s “I can talk to our enemies” ideology is, well, naive to say the least.

What do you think? I just don’t see McCain loosing to a socialist with a golden speech.

admin answers:

No. I really don’t but I bet you and I are the only ones left who believe that this country has the intelligence to really look at History, the issues, the candidates, their backgrounds, how they voted on the tough issues’
Obama feels he can talk to anyone because he has talked to everyone, thereby violating the Logan Act which borders on treason.
He feels his Muslim links (which are here today and gone tomorrow) will help him when it’s convenient but his “Christian” links with the Trinity church will allow him to relate to the Christians.
His socialistic “spread the wealth” plan has been tried and failed before.
I truly believe McCain will win by a small margin. If he doesn’t, I will be here to say something most far leftists will never say; “Congratulations.”

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