Fox 9 News interview with Financial Freedom Modifications Matthew Bjorgum.

Should you pay off your mortgage?

Visit msnbc.com for Breaking News, World News, and News about the Economy

How we got in to this mess...

http://www.msnbc.msn.com/id/29827248/

'If you had a pulse, we gave you a loan'

Dateline ABC has a decent piece on the current mortgage fiasco. It is well done and a good look into the current crisis on how toxic mortgages work in the system and how they were made/sold. Warning, watching this might make you a little ill.

Rolling Stone Article
“The Big Takeover” by Matt Taibbi is a good read on how this current crisis is not about money, but rather power. I found this a story very good and well informed. http://www.msnbc.msn.com/id/29827248/

Are rates as low as they can go?

Yesterday mortgage rates fell off a cliff again. They are back in the 4.375% - 4.5% range, down from 5.25%. This large drop was due to the government interaction in the bond the market. A story posted on Marketwatch.com today hints at the theory that mortgage rates might not go any lower then they are today.

“It's hard to make the case for a quantum leap below 5% given everything we are seeing now," said Nancy Vanden Houten, an economist at Stone & McCarthy Research Associates. She anticipates rates could hover between 5% and 5.25% for a while, she said in an interview Tuesday. "I think it's more or less found a bottom."

Nancy Vanden Houten might be right on this. How much lower can they really go? I’m not sure and I don’t think anyone really does. If you are in the market for a new home or looking to refinance I would suggest that in the next month you think about taking action. One thing is for sure, someday rates will go up and it will be a long time/if ever before they dip below 5% again.

Please contact me if you have any questions!

This article on Bankrate.com is a good read om why a person might consider an FHA loan or VA loan.

If you are a Veteran then the VA option might be a great choice. Not only can you buy home with no money down, but you also might be able refinance up to 100% of your property value.

If you are not a Veteran then a FHA loan might be a good option for you. These home loans allow you to take out more cash or pay off more debt then a conventional loan. In regards to purchasing a home the FHA loan only requires 3.5% down payment, rather then 5% with conventional. Although, FHA may sound like a great option, it costs a little bit more then a conventional loan.

Please have a mortgage loan officer review your personal situation to find out what product works best for you. Make sure you receive more then a single option from your loan officer, so you can compare the cost between the different types of loans and then you will be able to make an educated choice.

What to do about our foreclosure mess?

I came across a fairly good an opinion piece on the foreclosure mess. It was constructed by Fritz Pfister and can be found at this link.

I have a better idea. Instead of stealing money from responsible,
productive citizens to be redistributed, try this; waive all federal taxes for families facing default if their loans will adjust to a level
they cannot afford. These families would then be able to afford to pay for their
homes instead of sending the difference making money they have earned to D.C. to
be squandered on big government programs.

Should I or Should I not refi my home?

This article is all about asking yourself is it really worth it to refi your home or not?

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