Darrell Walters

The December 18^th release of the Bankrate.com Mortgage Trend Index is available with the experts saying that we should expect rates to fall even more.

The predictions for the week are:

• 23% of the experts believe that rates will increase
• 68% of the experts believe that rates will decrease
• 8% of the experts believe that rates will remain unchanged

Greg McBride, senior financial analyst, Bankrate.com states, "The Fed voiced their intention to get mortgage rates down by purchasing mortgage-backed debt, and they'll do what they need in order to make it happen." With the latest indication from the Federal Reserve that they will try anything necessary to prevent our recession from turning into a depression, rates should drop slightly but overall remain stable.

If you're interested in refinancing or purchasing now is the time to start the process. Once we reach a rate that you are satisfied with, we will lock it accordingly. Also you can email me for free up-to-date information on mortgage rates and remember that this survey is for conforming rates only and does not apply to VA, FHA, or jumbo loans.

Source: Bankrate.com

With home energy costs expected to soar this winter, check out this 30-second youtube video showing a home's electric meter running backwards.

This homeowner decided to install solar panels.

The home is producing more energy with the solar panels than it is using so the meter runs backwards. It may be a cost effective option to look into now that "going green" is becoming cheaper. It still costs money upfront, but how often to you get to see your meter running backwards?

Would you like to eliminate your electric bill? It's worth watching again.

Today the Federal Housing Finance Agency released the September edition of the monthly Foreclosure Prevention Report. The report focuses on the work of the GSEs in preventing or limiting foreclosures.

As there are two sides to almost every coin, the report featured both positive and negative aspects of the current housing situation. First the positive, loans on which foreclosure started as a percent of 60+ days delinquent declined and loss mitigation actions including short sales increased in September. The downside of the report mentions the decrease in loan modifications as well as a slight increase in foreclosures.

It does appear that Fannie Mae's latest attempt at restoring order to the housing market is improving as the Home Saver Advance Program is picking up steam.

If you need assistance with your current home loan or know of someone who does, email dwalters@integritymtgonline.com.

The Wall Street Journal recently ran an article about how 3:00 pm is affecting mortgage rate shoppers.

The article talks about how investors, in a need to raise cash, sell off anything that they can liquidate. With a normal market, other investors would buy up these assets immediately, thus keeping the stock market in check. In the current economic climate, buyers aren't purchasing immediately. They are waiting until the very last hour when investors have sold everything they can, then the buying begins.

This explains why mortgage rate repricing has been on the rise in the afternoon. The market becomes so overloaded with supply that it comes to a tipping point, and demand rises through the roof.

Therefore, it may be wise to go ahead and lock your rate at 2:59 pm if you are happy with it. The last thing you want is to hear that your rate isn't available and your payment would be higher.

Source: The Wall Street Journal Online
The Street's New Witching Hour: It's 3 p.m. as Stock Traders Jockey
December 11, 2008

Homeowners make a monthly payment for their property each month. That payment includes four parts:

1. Principal on a mortgage
2. Interest on a mortgage
3. Taxes on the real estate owned
4. Insurance for the real estate owned

These four parts are known together by the acronym PITI. Typically when someone is referring to their monthly mortgage payment, they are referring to PITI even if their payment doesn't include all the elements.

For example, a condo owner would not pay homeowner's insurance, but a monthly association fee. Also, a homeowner may have an interest only home loan and would not pay principal each month.

Even if your PITI doesn't include all the elements listed above, it is still the place to start when looking at purchasing a new home. PITI is the monthly cost, and by knowing what you can spend each month for your new home, it's easier to find a property that meets your budget.

Knowing how much you can pay monthly is better than asking "how much home can I afford." When you do that, your response will only include the principal (P) and the interest (I). As an informed home buyer, you need to know all four.

Source: Investopedia