the Fed

How To Get A VA Loan for 0% Down?

                    We will discuss VA Loans, which are 0% down loans for qualified military veterans. If you are a qualified military veteran, or an active duty Servicemember of the military, the U.S. Department of Veterans Affairs (VA) provides home loans with special benefits to help you become a homeowner. Special Benefits One of the best perks of being an active member or veteran of the military is the VA Loan, which requires you put down as little as 0% down for a down payment, without the requirement of mortgage insurance. Conventional mortgages require minimum down payment, where buyers have to pay a percentage of the home purchase price up front when buying a home. Other programs such as FHA loans reduce the down payment required, often lowering the minimum down payment to a lower percentage than conventional mortgages. Most loans under…

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Fannie Mae and Freddie Mac Rescue

The stock and mortgage bond markets were in turmoil last week as rumors circulated that Fannie Mae and Freddie Mac were on the edge of insolvency. Not just the mortgage market but our entire economy are dependent on the health of these organizations. It’s always been assumed that the government would do whatever was necessary to keep them afloat. The question was more a matter of what they would do to support them, whether the stock would remain solvent and who would foot the cost. Tonight the Fed stepped in and announced a deal had been put together, just before the Asian markets opened. This was the same way they put together the Bear Stearns buy out in March, and like then it was designed to calm the markets and avoid a sell off that could have gotten out of control. This deal will increase the Treasury credit line for…

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Illinois Mortgage Rates Weekly Update

Welcome to Illinois Mortgage Rates and News week in review for the week ending March21st, my take on the week’s financial news and how it affected Illinois mortgage rates. The biggest story this week was what didn’t happen. At the end of last week the Fed stepped in to engineer an emergency bailout of Wall Street giant Bear Stearns. The company was near death as a result of its cash crunch and their heavy position in Sub Prime mortgages. It turned out that the Fed bail out was just triage, a temporary solution to the problem. Over the weekend the Fed worked with JP Morgan Chase, an even bigger Wall Street giant, to put together a deal to take over Bear Stearns and keep it from bankruptcy. The deal was put together and the news released on Sunday afternoon, right before the Asian markets opened. The surprising – no, make…

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Illinois Mortgage Rates Weekly Update

Welcome to this week’s Illinois Mortgage Rates and News week in review, my take on the week’s financial news and how it affected Illinois mortgage rates. Wow! It doesn’t seem all that long ago that mortgage rates were dropping and it looked like we were going to test the all time lows of a few years back. Actually, it wasn’t that long ago, though 3 weeks in this kind of market can feel like forever. Markets move on sentiment. When things are good they are unbelievably good, and the future couldn’t be rosier (Do you remember the term ‘irrational exuberance’?). On the other hand, when fear is in the air you better be careful or you’ll get trampled by the herd as they run toward the nearest cliff. That’s where we are now. Mortgage interest rates are getting down right ugly (comparatively, anyway). Fixed rate mortgages jumped to their highest…

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Illinois Mortgage Rate Weekly Update

Welcome to this week’s Illinois Mortgage Rates and News week in review, my take on the week’s financial news and how it affected Illinois mortgage rates. The week is over and I think I need a drink. Maybe a lot of drinks. Or maybe I just need to hit my head against the wall for a while. Yes, it’s been that kind of week. The mortgage markets – and mortgage rates – moved so far and so fast, down and up and then down again, that I’m pretty sure I’ve got whiplash. It started with the surprise rate cut Tuesday morning (full run down here). Fear and greed took turns at the wheel and mortgage rates dropped to their lowest point in the last several years. For about an hour. Then the market swung back around and rates shot up, and all of a sudden we were higher than we’d…

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