NY Fed Suing B of A

Click on the title to link. Remember how we said just this morning that the whole foreclosure fiasco that came out the last few days was only the beginning? And that just because B of A and GMAC went back to "foreclosures as usual" did not mean the dominoes where done falling? Well, here's the next domino...

Could Rates Drop to 0%?

Click on the title to link. The short answer is, "No way." The ramifications of such a reality would be severe and detrimental to our economy. Cars do offer 0% financing, but that is comparing apples and oranges. This article does a decent job of explaining it. Check it out and give us your feedback and/or questions.

Low Rates Are Dangerous

Click on the title to link. This is a very good article about how one guy has finally come out about the unsustainability of the current low rates. We have been saying that inflation will kick in and rates will go up. We certainly thought it would be sooner, but we cannot sustain the current landscape; no way. Take the time to read this because this will happen.

Refi Window Finally Ready to Close?

Who would have thought mortgage rates would be as low as they are for as long as they have been? Either way, it's common knowledge at this point, at least with folks in the industry, that rates for conventional loans (loan amounts less than $417,000 in most areas of the country) are artificially low by somewhere between .5% and 1%. This is the case due to the fact that the Federal Reserve has been purchasing mortgage backed securities for several months now.

Well, the Fed's Mortgage Backed Securities Purchase Program is slated to end in March 2010. In theory, this could result in a very quick jump in rates of .5% to 1%. To put this in perspective, consider that a 1% rise in rates could add more than $150 to a monthly mortgage payment for a $25,000 30-year fixed-rate loan.

So, if you've been considering a refinance either to make improvements to your current home, pay off some outstanding debts or simply to reduce your monthly obligations, the window to these historically low rates may be closing.