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Market Update – Positive Manufacturing Report Sends Equities Higher

Jordan Fylonenko — Thu, 02 Sep 2010 14:26:03 +0000

The economy received some good news from the manufacturing sector on Wednesday sending equities higher and treasury and mortgage prices lower. Mortgage bonds are lower this morning after yesterday’s sell-off and subsequent reprice. Today’s July pending home sales report showed an unexpected gain in the month-over-month number. However, year-over-year home sales are down -20.1%. Finally, the July factory orders report came in as expected, showing a very small increase.

Mortgage Rates Haven’t Been This Low Since…

Amber Hunt — Thu, 02 Sep 2010 11:00:24 +0000

There’s no doubt about it – we are living in one of the best times in history to buy a home or refinance your mortgage. Mortgage rates have hit their lowest levels since 1955. 1955!! That’s over 50 years ago and long before many first time home buyers were even born. These amazing rates really make you wonder why people are still asking themselves: Should I refinance my mortgage? In order to give those who are still wondering some perspective on what a historic time we are living in, we put together a little list:

The Last Time Mortgage Rates Were This Low:

The very first McDonalds restaurant opened
It cost 3 cents to mail a letter
Dwight Eisenhower was President and Richard Nixon was Vice President
Gasoline cost 23 cents a gallon
A new car would cost you around $1,095
Rosa Parks refused to sit at the back of the bus, becoming the Mother of the Modern Day Civil Rights Movement
Pink clothes for men became a fashion rage

No one is sure how long low mortgage rates are going to last, but there’s no denying that the time to get started on that home refinance you’ve been wondering about is right now! Don’t miss your chance to lock in the lowest mortgage rates we’ve seen since haircuts cost 50 cents.

Stock Market Rallies – Could This Be the End of Low Mortgage Rates?

R. Rebecca Carter — Wed, 01 Sep 2010 20:52:33 +0000

A better-than-expected manufacturing report from the Institute for Supply Management (ISM) led to a surge in the stock market today, marking a welcome change from dismal stock performances in August.

Could this surge be heralding a rebound for our ailing economy? With so much recent talk of a sluggish economic recovery, today’s market moves give a much-needed glimmer of optimism.

Since rates tend to drop in a weak economy and rise in stronger economic environments, a trend toward recovery could mean an abrupt end to the low mortgage rate environment we’ve enjoyed in recent weeks.

If you’ve been waiting to refinance or purchase, the wide open window of record-low rates could be closing. We’ll be watching the market indicators closely to see if these trends continue. Of particular interest will be job reports later this week.

Customer Education through Online Communities Extends to Chinese-Speaking Investors

Scottrade Press Release Center — Wed, 01 Sep 2010 15:00:00 +0000

Scottrade's investors share information and advance services through online communities

Top Online Advertiser Promotes Wells to Chief Marketing Officer

Scottrade Press Release Center — Wed, 01 Sep 2010 15:00:00 +0000

Kim Wells leads effort to expand dedicated support, help customers be more successful

Market Update – Consumer Confidence Report Exceeds Expectations

Jordan Fylonenko — Wed, 01 Sep 2010 14:06:09 +0000

Economic signals were mixed yesterday with the June S&P/Case Shiller indices and August U.S. consumer confidence both exceeded predictions while the August Chicago purchasing managers index was below expectations. Mortgages and Treasuries are relatively flat as investors position themselves for Friday’s employment report.

Watch-It Wednesday: 30-Year Fixed-Rate Mortgage

Amber Hunt — Wed, 01 Sep 2010 11:00:05 +0000

Welcome to our new weekly feature – Watch-It Wednesday! Each Wednesday we will bring you videos featuring: frequently asked questions, mortgage facts, the latest mortgage news and much more. We hope that these videos will help keep you informed about the latest happenings in the mortgage industry and also assist you when you’re ready to complete your next home purchase or mortgage refinance.

This week, Home Loan Expert Doug Peeples talks about the 30-Year Fixed-Rate Mortgage:

Do you have a question for our Home Loan Experts? Send us your questions at content@quickenloans.com and we could feature it on the next Watch-It Wednesday!

Market Update – Releases Give Bleak Picture of Economy

Jordan Fylonenko — Tue, 31 Aug 2010 14:33:17 +0000

Treasury and mortgage prices are higher this morning extending yesterday’s rally. Investors are preparing for the week’s data which has portrayed a bleak picture of the economy, stirring fears of a double-dip.

FHA Loan Changes and What They Mean For You

Amber Hunt — Tue, 31 Aug 2010 11:00:25 +0000

The Federal Housing Administration is going to be making some changes to the FHA loan. These changes will go into effect on October 4, 2010. The two aspects of the FHA loan that are changing are the Up Front Mortgage Insurance Premium (UFMIP) and the Mortgage Insurance Premium (MIP) that is charged to borrowers on a monthly basis.

The UFMIP is actually going to be reduced from 2.25% to 1%. This fee is taken and put into an escrow account at the US Treasury and is distributed to HUD on a monthly basis in case the borrower defaults on their loan.

The MIP is going to be raised from .55% of the loan amount per year to .85% of the loan amount per year.

So what does this mean for you? Well, every situation is unique so it’s important to speak with a Home Loan Expert in order to make sure you’re getting the most accurate information for your situation. Your down payment and loan-to-value ratio will determine what your MIP payment will be. However, for a $200,000 loan, borrowers can expect to pay roughly $60 more per month after the new changes go into effect.

With mortgage rates currently at historic lows, and additional changes and fees on the horizon the time to complete that home refinance you’ve been thinking about or make your home purchase is now. Don’t pay an extra penny more than you have to in today’s market. Contact your Home Loan Expert today.

Driveway Ideas: How to Have & Keep a Spotless Cement Driveway

Amber Hunt — Mon, 30 Aug 2010 15:03:15 +0000

The least babied of all home surfaces has got to be the American driveway. The most commonly installed driveway surface, made of gray-toned concrete, is a beautiful sight when it’s brand new. Then comes life, and before long, sidewalk chalk and oil leaks have given your driveway personality. But with a little effort, you can restore your concrete driveway’s new appearance and protect it from future dirt and stains.

Driveway Drainage Problems?

If rain sits in puddles on your driveway instead of running into the street, your concrete has settled into an insufficient foundation. You’ll want to consult a concrete driveway professional to discuss your options. Your driveway should slope upward from the road ¼ inch for every foot in length. A 40-foot driveway should be 10 inches higher at the garage than at road level.

Removing Oil Stains

Sidewalk chalk washes away with a good rain, but oil stain removal takes some work. DIYers might try this two-step method: Sprinkle cat litter or fresh sawdust on the oil stain and let it sit for two days before sweeping away. This will remove surface grease. Then, dust the stain with a layer of dry cement powder and let it sit for two more days to absorb the deeper layer of oil. Be sure to check the weather before you do this. If rain mixes with the cement powder, you could end up with a permanent cement patch. Sweep powder into a bag and dispose. You can also purchase oil-removal products designed for concrete, but these can possibly work too well – you’ll be trading black blotches for clean white ones.

Power Washing

The most effective way to uniformly clean your cement driveway is to have it power washed. A professional will use the right equipment, water temperature and cleaning product to remove dirt and stains. The Power Washers of North America can help you locate contractors near you.

Seal the Concrete Surface

One pro of a concrete surface is that it is extremely durable. The downside is that it is also very absorbent. Sealants should keep your clean driveway looking great for a long time. Some sealants penetrate the surface to give invisible stain protection. Others provide a surface barrier while also giving a glossy sheen, much as if the driveway were wet. Still other options can enhance the plain gray, such as tinted concrete stains. These stains are available with or without protective barriers.

The appearance of your driveway creates an impression about your home and way of life. A well-kept driveway invites people into your home and can add value to your home investment. How does your driveway shape-up? To find out, take the curb appeal test. Step out to your curb and take a long look at the front of your home. In addition to making sure the grass is green (in season) and the front door is warm and inviting, pay special attention to the state of your driveway. If your house doesn’t tell anyone that is driving by that it has been well maintained, invest in turning that around. With mortgage rates at historic lows, a home refinance could provide the extra cash you need to make those needed updates. With a little hard work, your home can make a great first impression – and a great first impression can go a long way when it comes time to sell your house.

Driveway Ideas: How to Have & Keep a Spotless Cement Driveway

Amber Hunt — Mon, 30 Aug 2010 15:03:15 +0000

Driveway Drainage Problems?

Removing Oil Stains

Power Washing

Seal the Concrete Surface

Market Update – Full Week of Economic Releases Ahead

Jordan Fylonenko — Mon, 30 Aug 2010 14:14:59 +0000

After Friday’s sell-off, mortgage backed securities are up this morning from Friday afternoon. Some of the key economic releases this week include tomorrow’s home price index and FOMC minutes, Thursday’s ISM and Friday’s August unemployment report.

Market Update – Full Week of Economic Releases Ahead

Jordan Fylonenko — Mon, 30 Aug 2010 14:14:59 +0000

Grim Outlook for Bank Account, CD and Credit Card Holders

Patrick Gannon — Fri, 27 Aug 2010 15:07:26 +0000

Economic news this week show a grim outlook for bank account, CD and credit card holders:

Average Interest Rate on Savings and CDs Falls to Below 1%: Lowest in a Decade
The San Francisco Chronicle and Bloomberg News announced yesterday that "the average interest on savings, checking, money market and certificate of deposit accounts fell to 0.99 percent in July, the first decline below 1 percent in a decade".

The author comments that this trend is pushing people, who see their deposit earnings dwindle, to consider alternatives in smaller banks and credit unions, as well as higher yield CDs via online banks. At Lending Club, we have also seen an inflow of funds to invest in Lending Club Notes accounting for a 5-15% growth in monthly investments each month this year.

Read more: "Savers seek alternatives as bank interest falls" by Alexis Leondis, Bloomberg News.

Credit Card Rates Soar to Nine-Year High
Earlier in the week, the Wall Street Journal announced that the majority of credit card holders are seeing their rates go up to levels that hit nine-year high fueled by new rules limiting penalty fees. In the second quarter of 2010, the average interest rate on existing cards reached 14.7%, representing an increase from 13.1% a year earlier.

The author believes this is due to 2 major reasons: "The Credit Card Accountability Responsibility and Disclosure Act of 2009 has given card issuers less flexibility to raise interest rates as they wish. At the same time, issuers are still dealing with credit-card delinquencies that remain above historical levels."

Read more: "Credit card rates climb" by Ruth Simon, Wall Street Journal.

Trend: Americans Are De-banking
Out of every crisis, there is always an opportunity to do things in better ways. Innovation seems to be enabling a customer trend of moving away from banks. In agreement with the The San Francisco Chronicle and Bloomberg News article, Fortune and CNN Money posted this morning that Americans are "de-banking" meaning that "everyone from consumers to some of the world's largest companies are straying away from large financial institutions as sources of funding."

Read more: "Are Americans de-banking?" by Nin-Hai Tseng, Fortune.

@svPatrick

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Market Update – Mortgages Open Lower

Amber Hunt — Fri, 27 Aug 2010 14:08:42 +0000

The bulk of this week’s news and data has supported fears of a double-dip recession and helped Treasuries and mortgage bonds rally. Yesterday saw a slight turnaround with better than expected Initial Jobless Claims numbers. Mortgages are opening lower this morning as the Asian equity markets saw a slight rebound overnight and a better than expected GDP number was reported.

Market Update – Mortgage Bonds Slightly Lower

Amber Hunt — Thu, 26 Aug 2010 15:14:28 +0000

Yesterday’s New Home Sales data and Durable Goods data disappointed the markets helping mortgage bonds early. However this was offset by a weak Treasury auction. Mortgage bonds are slightly lower this morning as Jobless Claims came in a little better than expected.

Your End-Of-Summer Housekeeping To Do List

Amber Hunt — Thu, 26 Aug 2010 11:00:57 +0000

As summer draws to a close, you’re probably trying to squeeze in one last trip to the beach or plan your Labor Day barbeque. But as fall rapidly approaches, don’t forget about prepping your house for the next season. Here’s a handy to-do list to help you prep your house for fall & winter.

Use binoculars to inspect your roof and chimney for water leaks. Look for deteriorated, missing or damaged roofing material as these can be signs of water leakage.
Use weather-resistant caulk to seal minor cracks on your home’s exterior, walkway and driveway before the ground freezes.
Sweep away long-abandoned bird nests from outdoor lampposts and behind porch and garage lighting fixtures. Believe it or not, the dry twigs can easily catch on fire from the lamp heat.
Before you forget, turn off your outside sprinkler system and leave all outside water taps slightly open. This allows excess water to drip from the pipes, keeping them from freezing (and cracking) in the winter.
Take the first step in your holiday decorating by installing hooks to your roofline. It’s much easier to do the detail work now before the weather gets icy and cold.
Be on the lookout for end-of-season sales. The items you’re most likely to find the best deals on right now include barbecue and gas grills, patio furniture, room air conditioners and gardening equipment.
Collect emergency winter supplies before demand increases and while some things are on sale. Good supplies to have on hand: candles, matches, bottled water, batteries, flashlights, shovels and a battery-operated radio.

Taking the time to take care of some housekeeping items before the seasons change can save you a lot of time and money in the long run. Plus, getting these tasks done ahead of time allows you to really savor the final moments of summer.

Your End-Of-Summer Housekeeping To Do List

Amber Hunt — Thu, 26 Aug 2010 11:00:57 +0000

Use binoculars to inspect your roof and chimney for water leaks. Look for deteriorated, missing or damaged roofing material as these can be signs of water leakage.
Use weather-resistant caulk to seal minor cracks on your home’s exterior, walkway and driveway before the ground freezes.
Sweep away long-abandoned bird nests from outdoor lampposts and behind porch and garage lighting fixtures. Believe it or not, the dry twigs can easily catch on fire from the lamp heat.
Before you forget, turn off your outside sprinkler system and leave all outside water taps slightly open. This allows excess water to drip from the pipes, keeping them from freezing (and cracking) in the winter.
Take the first step in your holiday decorating by installing hooks to your roofline. It’s much easier to do the detail work now before the weather gets icy and cold.
Be on the lookout for end-of-season sales. The items you’re most likely to find the best deals on right now include barbecue and gas grills, patio furniture, room air conditioners and gardening equipment.
Collect emergency winter supplies before demand increases and while some things are on sale. Good supplies to have on hand: candles, matches, bottled water, batteries, flashlights, shovels and a battery-operated radio.

Why Aren’t More People Taking Advantage of Low Mortgage Rates?

R. Rebecca Carter — Wed, 25 Aug 2010 22:34:52 +0000

Over 24 million American homeowners could benefit from lower mortgage rates.

If you’ve been living under a rock for the past few weeks, I’ll let you in on something you might have missed: mortgage rates are at an astonishing low level – hovering in the 4% range. They’ve been holding like this for several weeks.

And yet last week the Census Bureau released tables from the 2009 American Housing Survey (AHS) that revealed surprising news. Rather than dig through the tables, allow me to break it down:

113.5 million households in the US
76.4 million owner-occupied homes
24.1 million mortgages have interest rates above 6%.

Repeat: 24.1 million US mortgages are above a 6% interest rate! When rates are so low, why stay in a mortgage that costs more than it has to?

Over 37 million American households don’t own a home

But the mystery only deepens when we see the astonishing housing news from this week. According to the National Association of Realtors, home sales dipped a record 27% from the previous month – nearly double the expected rate. Looking at the above list from AHS, 37.1 million families aren’t homeowners that could be.

So why aren’t more people buying or refinancing? Here are some likely reasons:

Credit score – To take advantage of the lowest rates available, most lenders require a credit score of at least 700. With a slumped economy and high unemployment levels, some people may be struggling to pay their bills and keep optimum credit score levels. (The good news is there are things you can do to quickly improve your credit. Check out Quizzle’s Credit Personal Trainer).
Income and asset verification – With tightening restriction, borrowers now must provide rock-solid income, which may be more difficult for the self-employed. And for some programs, lenders require proof of assets that show several months worth of mortgage payments. Not always easy when people may not have a lot saved up.
Down payment (purchasing) – While some loan programs – like an FHA loan, for instance – require minimal down payments, the best loan products with the lowest rates often require as much as 20% down.
Home equity (refinancing) – It’s the elephant in the home finance room. Housing prices have dropped all over the nation. Many homeowners have sadly found themselves underwater – owing more than there house is worth in today’s market. And since some equity is usually required to refinance, this means many homeowners have to wait until they can pay down more of their balance, or values increase.
Fear of the economy – With jobs uncertain, some people may be reluctant to put their savings toward a home purchase or the fees required to refinance.
Holding out for an even better rate – How low can rates go? Some people believe that with the economy on shaky ground, rates are likely to stay low, and may even get lower. This reasoning is a gamble, especially considering that historically rates have been averaging 7.5%.

These are all great reasons. But the truth is, as the recovery continues, the housing market will also begin to correct itself. This means rates will inevitably return to more average levels. In this economy, homeowners (and potential homeowners), need to look at the best ways to use their savings, leverage their debt, and invest for the future. Those who could benefit from refinancing - and those who are ready to buy a home - should try to get their mortgages now.

Market Update – Durable Goods Report Shows Economy Slowing Down

Jordan Fylonenko — Wed, 25 Aug 2010 15:00:52 +0000

Treasuries are up even more this morning after the durable goods report showed that July orders increased less than forecasted. This is yet another sign the U.S. economy is slowing down. The MBA reported that total mortgage applications rose by almost 5%. Also, the July new home sales report is expected to be unchanged while the FHFA house price index is expected to show a small increase.