Salient to Investors: 5 habits that prevent you from becoming wealthy: Being a “C” student who thinks they deserve an “A” lifestyle Inability to delay gratification by taking on debt. Credit card interest at 15%+ leads to financial failure – even Warren Buffet has not returned greater than a 15%
READ MORE... →Salient to Investors: Zillow expects 5 percent mortgages by year-end and the 10 places where the percentage of monthly income will be pushed furthest above the average are, in order: Stockton, Ca – where the median price of a home will rise 22.8 percent by September. Honolulu, Ha – where
READ MORE... →Salient to Investors: Guy Cecala at Inside Mortgage Finance said jumbo loans, mostly adjustable but also fixed-rate, increased by 34 percent in the first 9 months of 2013. Greg McBride at Bankrate said cash-rich banks, including Wells Fargo and Bank of America are using ARMs to hedge the loans’ longer-term
READ MORE... →Salient to Investors: 30-year mortgage rates were at 4.86 percent last week. Robert Bostrom at Greenberg Traurig said the Fed finally realized that housing is fading in anticipation of the tapering and even higher rates, and could not taper without irreparable damage to the housing recovery. Anish Lohokare and Timi
READ MORE... →Salient to Investors: The maxim “Don’t take a mortgage into retirement with you”’ is no longer true given mortgage rates close to historic lows and lower than on any other loan now or in the future. Better to invest surplus money dollars in a retirement investment account which should return more
READ MORE... →Salient to Investors: ARM applications in late June rose to the highest level since 2008. loan pay Cameron Findlay at Discover Financial Service said we’ve seen a shift in the way people look at adjustable-rate mortgages: they are still skeptical but the sticker shock of fixed rates is making them
READ MORE... →Salient to Investors: Banks are offering jumbo mortgages – too big for government programs – at rates at or below taxpayer-backed loans, while the extra cost of 30-yr fixed jumbo loans averaged a 6-year low of 0.16 percent in June. Paul Miller at FBR Capital Markets said bigger loans are becoming relatively cheaper
READ MORE... →Salient to Investors: Paul Willen at FRB of Boston said if people believe house prices are going up, credit availability will evolve because there is too much money to be made lending to homebuyers. Freddie Mac said the average rate for a 30-year fixed loan is at 3.93 percent versus 3.35 percent in May and
READ MORE... →Salient to Investors: The wealth effect from rising house prices may no longer be as effective in spurring the US economy as homeowners increasingly pay down mortgage principal and shorten maturities. Freddie Mac said cash-in refinancings outnumbered cash-outs by more than 2-to-1 in Q4 2012. Amir Sufi at the University of Chicago said the
READ MORE... →Salient to Investors: Look for lenders that specialize in poor credit or after-bankruptcy loans. Be prepared to pay a much higher interest rate, secure the loan with assets, accept a smaller loan amount. Improve your credit before you borrow by making all of your utilities to insurance premiums to credit
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