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.