30-Year Fixed Mortgages Looking Good Now

Amid a steady stream of headlines about turmoil in the U.S. mortgage market propelled by rising defaults of subprime loans, home buyers and owners are fast turning to traditional, long-term mortgages for home financing needs.

Thirty-year fixed-rate mortgages provide certainty and security, features that had been of little concern to many home buyers and owners who tapped initially less expensive adjustable-rate mortgages during the housing boom of recent years to buy houses and refinance mortgages.

Now with the housing market in an extended slowdown, in part because so many adjustable-rate mortgages are in default as "teaser" interest rates have lapsed and monthly payments have soared, home buyers and owners are taking a second look at long-term, fixed-rate debt and are liking what they see, according to Wharton School Professor Susan Wachter's U.S. Mortgage Payment Index.

The perception out there is that a year from now, mortgage interest rates will be higher.  It's just a question of how much higher.  Which, when combined with more inventory on the market than in recent years, could make now the best time to buy a home than we've seen in a very long time.

We'd love to hear your comments about the current market trends and news.  Leave your comment below…

Mortgage Reform Unlikely in 2007

Homeowners unable to pay monthly mortgage bills and facing foreclosure shouldn't count on help from Washington this year.  Regulators and lawmakers seem to be taking a wait-and-see approach as they confront the fallout from several years of lenders making too many home loans to people with inadequate credit.

The foreclosure rate nationwide is rising at an annual rate double that of two years ago.  Nearly 2 million adjustable-rate mortgages are forecast to reset at higher rates over the next two years, suggesting the foreclosure rate has not peaked.

Federal lawmakers and regulators say they are balancing how to make sure high-risk borrowers can still get loans against efforts to rein in abusive lending practices.

We'll keep you posted here on anything new that might help if you're struggling with, or facing, possible foreclosure.

Choosing a Real Estate Appraiser

If you plan to finance your home through a bank or other lender, you’ll more than likely need to get the property appraised first. Banks and most lenders want to know the value of the home for your protection, as well as make sure that the home they are financing is worth the total amount that you take on the loan.

The appraisal usually indicates that the home meets or exceeds the asking price.  In some cases however, the appraisal will come back saying the home is worth less than the asking price.  If this happens, the buyer normally has to either drop the deal or try to negotiate with the seller to get a price that meets the appraisal.

When you are buying a home, one appraisal can make or break the deal.  Even if you're not financing your purchase through a lender or a bank, you should still get the home appraised and find out the true value.  You should also make a point to find the best appraiser you can afford.  If you hire an appraiser who isn’t that experienced, you’ll pay for it later when you discover the property isn’t worth what you paid for it.

When you look for a real estate appraiser, look for someone who comes highly recommended.  Ask family and friends for their opinions, or search local papers, ask your real estate agent, even search the Internet.  If you take your time and search for the best real estate appraiser that you can find – you’ll normally get an appraisal that is right on target.

If you have a question or comment about real estate appraisers, post it below by using the comment link.