Category: Mortgages

Household Debt, Mortgage Standards, Homeownership, And Home Equity

Household Debt, Mortgage Standards, Homeownership, And Home Equity
The 4 topics listed in the headline don’t actually have that much of a connection to each other but they were all covered in a rather interesting presentation released by the New York Federal Reserve about a month ago: Home Prices, Housing Wealth and Home Equity Extraction. In that report they provided several charts showing the... Read more »

Fannie Mae: Responsible Mortgage Lending Or More Homeownership?

Fannie Mae: Responsible Mortgage Lending Or More Homeownership?
You remember the subprime mortgage crisis, right? Skyrocketing homeownership levels, assuring everyone in America that they could become wealthy by participating in the American dream? And the ever popular narrative of evil bankers, forcing people to take on mortgages that they couldn’t afford to pay back? Soaring home prices, followed by a crash? Banks taking... Read more »

What Do Rapidly Rising Mortgage Rates Mean For The Real Estate Market?

What Do Rapidly Rising Mortgage Rates Mean For The Real Estate Market?
Just in case you missed it mortgage rates have really been rising since mid-September when the 30 year fixed rate bounced off of a short term low of 3.78% and has recently hit 4.43%. For historical perspective you can check out the interactive mortgage rate graph below from the Federal Reserve Bank of St. Louis... Read more »
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Many Chicago Area Homeowners Still Underwater On Mortgages

Many Chicago Area Homeowners Still Underwater On Mortgages
Last week ATTOM data solutions, the parent of RealtyTrac, came out with their Q2 2017 U.S. Home Equity & Underwater Report that looks at how well the nation’s homeowners are doing with respect to the equity in their homes. As you no doubt know home equity is a substantial portion of the net worth of... Read more »

Why Rising Mortgage Rates Shouldn't Crash Chicago Real Estate

Why Rising Mortgage Rates Shouldn't Crash Chicago Real Estate
A couple of weeks ago I posted on how rapidly mortgage rates have risen since the election. Given the Federal Reserve’s policy direction, this trend is likely to continue. So the obvious question is will higher mortgage rates lead to a crash in the Chicago real estate market? After all, rising mortgage rates result in... Read more »

Free Money: Lender Giving Away Up To $20,850 To Each Home Buyer

Free Money: Lender Giving Away Up To $20,850 To Each Home Buyer
Seriously. I kid you not. Free money. There is some lender out there giving home buyers up to $20,850 each! And you better believe that the government is almost certainly behind this. I was contacted by one of our mortgage bankers the other day with news of this incredible program and it is indeed for... Read more »
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Mortgage Rates Have Spiked And It's Trump's Fault

Mortgage Rates Have Spiked And It's Trump's Fault
In case you haven’t already noticed, it looks like we can blame the election for something else now – a huge spike in mortgage rates. The last couple of weeks have been full of surprises. Not only did nobody (I don’t really think that’s a double negative) predict the outcome of the election but nobody... Read more »

Negative Equity In The Chicago Area Real Estate Market

Negative Equity In The Chicago Area Real Estate Market
Last week I posted on how the real estate market in the Chicago area could not possibly be in a housing bubble since it hasn’t fully recovered from the last bubble. Many area homeowners are still underwater on their mortgages, which means they owe more than their home is worth- i.e. they have negative equity.... Read more »

Housing Bubble 2.0: Predatory Lending Is Back

Housing Bubble 2.0: Predatory Lending Is Back
The popular narrative about the financial crisis/ housing bubble is that predatory lending practices tricked unsuspecting consumers into buying homes they couldn’t afford, driving up home prices to unsustainable levels in the process. Then when home prices inevitably went down the lenders took homes away from these people, making billions of dollars in exorbitant profits... Read more »
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When A Mortgage Pre-Approval Is Not Worth The Paper It's Printed On

When A Mortgage Pre-Approval Is Not Worth The Paper It's Printed On
Many people, but not everyone, are aware of this but when submitting an offer to buy a home the buyer really should provide a pre-approval letter from a lender that basically says they look good for getting a mortgage for the purchase price less the down payment – assuming the buyer is going to be... Read more »