Mortgage Rate News

In recent weeks, many at the Federal Reserve and in the government have gone from insisting that the subprime lending crisis is under control to acknowledging that it is very much out of control. As the Fed tries to boost confidence in the credit market, turning up rather ineffectual measures, the government has decided that it’s time to step in.

The news that President Bush is planning to join the Federal Reserve in trying to relieve the mortgage market is sending a measure of relief through credit and stock markets today. Bush has announced that he has a plan to help some homeowners facing foreclosure, and some who have seen increases in their payments due to teaser mortgage interest rates transforming into hefty variable rates.

President Bush offers the FHA as a solution

President Bush’s plan is to offer FHA insurance to some homeowners. This insurance would help cover them if they have missed mortgage payments. The idea is to avoid foreclosure if possible. This is expected not only to help homeowners, but also to aid the mortgage market and stem some of the fallout from the subprime lending crisis. The Wall Street Journal has more on the plan offered by President Bush.

MarketWatch also reports on the FHA insurance plan, and mentions that Bush’s remarks will be given later this morning:

President Bush is due to speak at 11:10 a.m. Eastern on “homeownership financing,” according to the White House.

The Bush plan would allow about 80,000 homeowners to refinance their mortgage, official said. Some groups have estimated that as many as 2 million homeowners are at risk of foreclosure.

No one knows the exact impact that this move will have on those facing foreclosure, or whether it will really help abate the subprime lending crisis. But the stock market is up this morning, and the news has momentarily arrested the dollar’s decline on the foreign exchange market.

Tags: mortgage interest rates, President Bush mortgage market, home mortgage loan, mortgage market boost,
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One of the most important aspects of getting a home mortgage loan is your credit report and score. It is very important that you have a good credit score when you apply for a home loan, especially now. To that end, you should keep watch over your personal finances, including regularly checking your credit report. And if you find a mistake on your credit report, you need to move to fix it. Here are 5 steps that can help you fix a mistake on your credit report:

1. Get your documentation together. It is important that you keep track of billing statements and payment information. Keep them in a file just for that purpose so you can easily find them. Then, if a mistake shows up, you can find the proof needed to clear it up. Continue keeping documentation throughout your dispute. You want copies of letters, requests and other information available to you later.
2. Let the credit-reporting agency know. The mistake on your credit report is usually found through one of the three credit bureaus. Call the one where your mistake was found. Send a letter as well. It’s best to do this in writing. Keep it to one page, and try to be detailed. The bureau then has to notify the other two, as well as the reporting creditor, and begin the investigation.
3. Send a letter to the creditor. You can speed up the process by contacting the creditor who made the error as well. Call to find out where to send a letter of dispute, and then write one for the creditor. This will get things rolling on the creditor’s end, without the wait for the credit bureau to contact the creditor.
4. Follow up in 30 days. Creditors are required to dispute or verify the information provided within 30 days. So follow up. You entitled to another free credit report so that you can verify the proper changes have been made. You should also follow up with the credit bureau if the information in your credit report has not been fixed.
5. Get an attorney if the situation is not resolved. If you are in the right, and you have taken all of the above steps and nothing has been resolved in the required time, you can hire a lawyer. The Fair Credit Reporting Act always for a lawyer fee, so if you are in the right, you only pay if you win. And the fee is usually paid for you.

Tags: apply home loan, home loan, home mortgage, steps fixing mistake credit report,
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When it comes to buying a home, it helps to know what you need to do. Kathy at Shak & Jill offers 4 steps that can make buying a home that much easier.

1. Choose an agent. It helps to find what is termed a buyer’s agent. He or she will likely look out for you. Ask friends and relatives if they know a good agent, and interview them. It is important to find a good buying agent as it is to find a good listing agent when you sell. You want an agent that will work hard for you. And the good news is that in this market, a buyer’s agent is at no cost to you. The seller usually pays the closing costs, which includes the agent’s commission.
2. Find out what you can buy. This step includes checking with different lenders and getting pre-qualified. Then you need to choose the lender you like best and get home loan pre-approval. This step can make it easier to get the right home mortgage, and it will help you understand the house you can afford. You’ll want to check your credit score too.
3. Define your search. Your next step is to let your real estate agent know your search parameters. Be specific. Let your agent know what features you can’t live without, and those that you think are optional. You also need to be upfront with your agent about what you can afford. A good real estate agent will take those search parameters and then only show you homes that fit your needs.
4. Be ready to buy when you find your home. If you have followed the steps listed above, you will find that when you do find the right home, you will be ready. The home loan will just need to be finalized. But be patient. You can afford to wait. And, since home prices are actually coming down for the first time in more than 50 years, you are likely able to negotiate for your home.

Tags: pre-approval home loan, home loan, home mortgage loan, check credit score,
steps buying a home, buying a home, real estate agent