Mortgage News

The Mortgage Crisis extends further than banks and home owners

The mortgage crisis has hit the United States hard. Record number of foreclosures have devastated cities and towns all across America. Many Americans find themselves owing more on their homes than they appraise for and thousands have decided to just walk away. The mortgage crisis however extends further than just the banks, mortgage companies and home owners.

Internet Outsider  informs us that not even one of the most successful companies of the decade is immune to the mortgage crisis. In their article “Google Not “Immune” to Mortgage Crisis” The Internet Outsider explains that Google has taken a beating from mortgage-related advertising revenue. Internet advertising is Google’s big money maker and with the mortgage crisis still at hand Google is definately feeling the pinch from advertisers.

Many of the lending instutions are getting out of the mortgage business all together or drastically reducing their advertising budgets. Google also worries that this could also produce a chain reaction to other industries as well. Contractors, home-supply retailers, construction companies and broader financial services companies could soon follow the downward spiral.

If drastic actions are taken soon to fix the mortgage crisis the financial world as we know it could soon see major changes.

July home sales up almost 10%!

Could this be the end of the housing bubble? The Commerce Department reported today that new home sales increased 9.6 percent in July! Is this a sign that the housing market is climbing from the record breaking low it reached earlier this year?

Falling home prices have caused increased sales over the past four months, but this months increase was much greater than expected. Low prices and the federal tax credit/housing stimulus program offered by the governemnt to first time home buyers was probably a huge boost to the sales.

Could this mean our economy is finally starting to climb back out of recession? I’m not an expert on the subject matter, but I do know that now is a great time to buy a home. With record low home values and record low financing options it’s an obvious choice if you are in the market for a home. With these record high home sales it’s no doubt that home values and interest rates will soon start to climb. Don’t miss out on a great time to buy a home or even a rental property.

Will mortgage rates start to climb?

If you’ve kept up with mortgage rates over the past several months you have noticed that they have been somewhat steady. Rates sharply declined at the end of last year and continued the downward fall until just recently. Will mortgage rates stay steady, start to increase or continue to decrease over the next several months?

I’m not a mortgage rate expert or by no means am I qualified to predict mortgage rate trends, but if you are in a variable interest rate mortgage loan I would seriously consider getting into a fixed rate mortgage soon, why?

As I mentioned earlier mortgage rates have been somewhat stable for the past several months. Fixed interest rates continue to hover around the 5.5% mark which is a great rate. With some positive signs of recovery from the U.S. economy it’s doubtful that the rates will take any significant drop over the next few months. Therefore I think it’s a great time to lock in a fixed rate interest rate around 5.5%.

Kentucky Adopts $5000 New Home Mortgage Tax Credit

I’ve always thought it was a little unfair that all the government housing stimulus package deals were for first time home buyers. Since I’ve purchased several houses I’m not eligible for any of the credit, even if I did decide to buy another home. However, that’s about to change for Kentucky.

The Kentucky General Assembly just added a new Bill that allows for a $5000 tax credit for those who purchase or build a new home within 1 year of the bills passage. The best part about the new bill is that it’s not for first time home buyers. First time home buyers will not be eligible for this credit because of the federal program, but it’s great news for home owners looking to trade up or down in housing.

There are of course a few rules and guidelines that must be met before you get the credit. First, they are only setting aside $25,000,000 in credits and it’s first come, first serve. If you want to take advantage of the mortgage tax credit get in early.

Second, the home has to be your primary residence and you have to live there for 2 years. I assume if you don’t you’ll owe the credit back.

If you want complete information feel free to download the entire document here.