Michigan Mortgage

Toxic Adjustible Rate Mortgages

Lets face it, these loans have more moving parts than a Swiss watch and most of them should never have been written – I will even include some of the ones I wrote. Not so much that the product is so scary, but because the uncertainty is more than many want to live with day to day. Be that as it may, some are still in this deal and we should keep a level head about things. They still need good advice…

Fed Will Keep Buying If Rates Spike

As we have been saying since this time last year – the FED will officially end its Mortgage Backed Securities purchase program in March this year after it reaches the prescribed $1.25 Trillion mark.

But, according to New York Fed Bank President William Dudley, the Fed is not on “auto pilot” and will restart the MBS purchasing program if mortgage rates spike. “If there is a sharp turn in the road” Mr Dudley said, the Fed would intervene…

More ARM advice – new client, different circumstance

This conversation was the result of another of my clients reading my blog last week:

CLIENT:
ok wanting your advice on this . We have the house up there in MI that we have an ARM on and…

Good Advice for someone in an ARM

Last week I received a call from a new client. I had not written his last loan, but he was referred to me for advice because he is in an ARM mortgage, is facing a layoff from work and wants to make a good decision. This is the email I just fired off to him . . .

Why Interest Rates Will Likely Begin to Rise

How are Interest Rates Determined?

Interest rates are the result of the yield on Mortgage Backed Securities (MBS). When MBS are sold to investors they are purchased at varying levels of demand. If they are in low demand, the price of the security will go down and the yield (or return) will go up. This will result in higher rates to the consumer…

Another Bright Spot? Low Rates May Be Here to Stay

In keeping with our previous “cautious optimism” ideal, I’ve been watching for more bright spots in real estate and investing. And here’s another…

One of the financial magazines I read weekly is Business Week. It can be a little bit politically charged, but depending on who’s writing the economics ‘short’, it can be very good…