It might be getting easier for some to pay the mortgage, but more foreclosures are on the way. Photo Credit: Brendel/Wikimedia Commons.

Fewer people are struggling to pay the mortgage, but the housing market is still in trouble. Recent improvements in the employment outlook bode well for struggling homeowners who have been hoping to get jobs, but the housing market is still in dire straits.

Number of underwater homes thought to be receding

A recent Harris Interactive poll, according to Daily Finance, revealed that, compared to last year, fewer survey subjects believed that their homes were underwater. Approximately 21 percent of the more than 3,000 respondents believed their homes were worth less than what was still owed on the home, compared to 24 percent in the same poll conducted at the same time last year. Additionally, 22 percent of respondents in the Harris poll were struggling to make mortgage payments, compared to 29 percent last year. However, 3 percent fewer people in the poll said they had a mortgage. The unemployment rate recently began to recede, which means fewer people will have to take out installment loans to cover the mortgage.

Distressed homes flooding the market

According to USA Today, analysts have been concerned with the number of distressed properties, which can keep prices down. It was estimated that, as of January, there were 1.8 million distressed houses or homes for which owners have gone 90 days or more without making payments. The price of a distressed home always is at least 20 percent lower, which makes them attractive to bargain hunters and real estate investors. Unfortunately, a large supply keeps home prices lower nationally. To make matters worse, the number of foreclosures is sure to begin rising in coming months as major mortgage lenders who had put a moratorium on foreclosures will resume foreclosing on homeowners, according to Reuters. Many of the nation’s largest mortgage lenders, including Bank of America and Wells Fargo, had to suspend foreclosures as questionable foreclosure practices at those institutions were being investigated by the government.

Cheap homes for those who can take advantage

It has been a buyer’s market for some time in real estate, and it is likely to stay that way. Home prices are anticipated to keep falling for at least the next few months, according to MSNBC. Mortgage rates are still coming off record lows several months ago, and people who can get the financing may never have to run out for same day loans to cover the mortgage payment if a low rate can be locked in. However, lenders have been fairly skittish in an uncertain climate.

Sources

Daily Finance

USA Today

Reuters

MSNBC

Low mortgage rates make refinancing a popular choice, but long-term savings and investment opportunities should be considered before making a decision. Image: CC TheTruthAbout/Flickr

Mortgage refinancing is booming. Its hard to get a mortgage loan, but mortgage refinancing currently makes up more than 80 percent of mortgage lending. Record low mortgage rates have existing homeowners considering refinancing to lower their monthly payments or shorten the term of the mortgage loan. Mortgage refinancing includes factors such as interest rates and taxes that determine whether or not its a good idea. Plus, deciding whether or not to refinance with a 15-or 30-year mortgage has major long-term financial implications.

Refinancing keeps mortgage lending alive

By refinancing a mortgage, a homeowner can save thousands of dollars in mortgage payments each year. SmartMoney reports that homeowners are refinancing mortgages in record numbers. According to the Mortgage Bankers Association, refinancing accounted for 80.5 percent of total mortgage lending. The MBA said that is nearly twice the rate of refinancing than what was documented from 1990 to 2008. The average rate for a 30-year fixed mortgage was 4.51 percent for the week ended Sept. 10. The average rate for a 15-year mortgage was 4.02 percent. A year ago, those rates averaged 5.54 percent and 4.97 percent, respectively.

When mortgage refinancing makes sense

Saving money with lower monthly payments is attractive, but not every homeowner should refinance a mortgage. The New York Times reports that it all boils down to whether or not you can really save money over the duration of the loan. Homeowners need to determine their closing costs and monthly savings. Divide closing costs by savings; that shows how many months it takes to break even. If a homeowners stays put that long, a refinance could work. Taxes could also make the amount of savings deceptive. Most mortgage interest is tax deductible; a lot of closing costs aren’t. Plus, refinancing with a 30-year mortgage  may improve monthly cash flow, but increase long-term interest costs substantially.

A creative refinancing alternative

Refinancing with a 15-year loan substantially reduces interest costs. However, Kathy M. Kristof at the Los Angeles Times writes that a shorter-term loan means a higher monthly payment. Even for homeowners who can afford a higher monthly payment, there may be smarter ways for them to invest their cash. Kristof uses a $300,000 loan as an example. A 15-year mortgage has a total cost of $399,420. A 30-year mortgage: $547,223. However, the 30-year mortgage has a monthly payment $700 less. If that money were invested in a diversified portfolio of stocks that has averaged a 9.6 percent return over the last 83 years, it would be worth $279,305 after 15 years. That money could pay off the $198,701 left on the mortgage with $80,000 left over. Of course, investing in the stock market would be risky, but in this case, it would bring a greater reward than refinancing a 15-year mortgage.

Advantages of a No Fax Cash Advance

When you need cash in a hurry, such as for your mortgage, not having to deal with a fax machine or loan office can be a real time saver. For example, say you applied at a traditional loan office for a cash advance. They must then fax your application to the actual lender. Then the lender must take the time to make a decision. After the decision is made, they will let the loan office know. And then they have to track you down to let you know the decision. Then you must drive back to the loan office to pick up your cash advance. Sounds complicated, doesn’t it?

Of course, if you were to apply for a no fax cash advance online, the information could be quickly forwarded to the lender. They could give the answer immediately and you could have your no fax cash advance in your account within a few hours. You could catch up your mortgage payments, all within a matter of 24 hours.

No Fax Cash Advances are quick and easy

As you can see, applying for, and getting, a no fax cash advance is quick and easy. If you meet all the requirements, then you should be able to get your cash pretty quickly. Use this cash to save your house from going into foreclosure. To prevent this from happening again, be sure to pay off your no fax cash advance as soon as you get your next paycheck. After all, you want to keep this option open for the future in case you need it again!

Start your no fax cash advance loan application HERE!

Photo from Picasa

Keep Loans in Check

The unemployment rate is still high, and people continue to lose homes after failing to meet mortgage payments. Credit card debt also eats into their finances, leading them to borrow even more money from lenders. However, there still are people who have good jobs with better than average wages, no credit card debt or personal loans, and are looking for help in restructuring their finances. They have enough retirement and emergency savings, but they are worried that certain expenses may lead them into an undesired situation. These are not people who are looking for personal loans, but rather, they are trying to stay out of debt, but do not know what to do. Managing money is a skill that even those with extremely large salaries, such as executives or even actors, may not know how to do.

An Example

An example of this has been reported in the Washington Post (12/27/2009). The story starts out by profiling a couple, who are both federal employees who have saved nearly $160,000 towards their retirement and continues to contribute $1,700 a month towards this fund. They have one child as well. But they worry consistently about a large, but still affordable, mortgage payment each month, as well as a student loan of $22,000. Apart from that, they say they have a habit of dining out regularly, which takes a big chunk of their income. While they have thought about cutting down on their retirement contributions to finance their habit of dining out and keeping up with their mortgage payments, they realized that both options are unviable and they have sought counseling to see what can be done about their condition.

What a Situation to Be In!

Here is a couple who has everything they ever need in life, including a good job, a nice home, decent cars and all the luxuries. However their current debts are not such that they cannot be handled, as all they need to do is make some minor adjustments in their daily habits. Yes, they must give up on some of the luxuries and impulsive habits that they had developed over the years, which will mean more cooking at home rather than going out to eat. The money they save can go towards the student loan that they have. They could even cut down on certain other expenses that they may be indulging themselves in. A reduction in the contribution they are making towards their retirement is certainly not an option, as this is the last place they need to skimp on. What will happen if they get to retirement age, and all they have is enough to barely eek out an existence? Getting a personal loan that age would perhaps be a monumental task with higher interest rates. Instead, they could look at a loan modification for their mortgage and seek lower payments. As they have a good income coming in every month, a personal loan is not recommended. The problem they face is not the same that many others face, and they are not among the millions who are looking for loans from lenders, but rather, they have problems managing the money they have.

Apply Here for a Personal Loan!

Selling your home is a difficult process, but while most people have traditionally turned to real estate agents to assist in the process, a growing number of homeowners are going it alone. These “For Sale By Owner” transactions – commonly abbreviated as “FSBOs” or “Fizbos” – are intended to save the seller money by eliminating real estate agent commissions. However, attempting to sell a home isn’t for everyone. Let’s look at some of the things you’ll want to consider.

Consider All of the Costs

Real estate agents typically charge between 3 and 6 percent of your home’s final selling price, which can add up to a significant amount of money with home prices typically topping $100,000. But while this may sound like a lot of money, it isn’t the only cost you should be considering. If you don’t have experience in the real estate market, you may find that an agent helps to get your home sold faster and for more money than you can negotiate on your own.

In addition, if you’ve already moved into your next home, you may be juggling two mortgage payments. The cost of maintaining both homes and paying both mortgages – often referred to as the “carrying costs” of both properties – can add up quickly. If selling your home on your own will take longer, you’ll need to weigh your commission savings over the carrying costs you’ll incur maintaining two homes.

Exposure is Important

Another important consideration is the amount of exposure your home will get from a real estate agent versus listing it yourself. Real estate agents have access to a network of resources designed to get the word out about your home, from the Multiple Listing Service (MLS) to other agents to real estate web sites. When you sell your home through a real estate agent, you’ll have someone working for you around the clock to help get your home noticed.

However, this isn’t to say that you can’t attract potential buyers on your own. The number of FSBO real estate web sites has grown dramatically in recent years, and the trend toward social networking online makes it easier than ever to help get your home noticed. Just be aware that it does require time and effort to market your home, which may be a challenge if you work a full-time job beyond trying to sell your home.

Respect Your Level of Experience

Real estate transactions aren’t simple matters. When you bought your first home, you likely sat and sifted through reams of paperwork at your closing – unless you’re an expert in real estate transactions, you probably didn’t know what it all meant. But all of the legal “mumbo-jumbo” in those papers important and necessary to protecting the rights of both you and the buyer. Leaving any of it out because you aren’t familiar with real estate law isn’t just negligent – it’s downright dangerous.

If you do decide to list your home on your own, it’s an absolute must to enlist the services of a real estate lawyer to help you prepare the necessary paperwork, which will add to your home selling expenses. You may also need to do a significant portion of the legwork, so be sure to account for the amount of extra time you’ll need to spend selling your home on your own.