September 2011
4 posts
10 tags
Twist and Shout
The Federal Reserve’s latest strategy to kick-start the economy has been dubbed “Operation Twist” by pundits, but it’s causing many people to shout. When the Fed announced its intentions to purchase $400 billion in long-term bonds on Wednesday, the Dow Jones Industrial Average immediately dropped 250 points. Then on Thursday, the Dow dropped 400 points more. In short, financial markets...
5 tags
A Novel Solution, But Can It Work?
We like it when people think outside the box. Radar Logic, a data and analytic firm, has sent a proposal to Washington on a loan-restructuring plan we find intriguing.
Mortgage News Daily offers an example of Radar logic’s plan in practice: A loan with an original balance of $190,000 has been paid down to $186,000, then goes into default. A foreclosure occurs and a subsequent sale of...
1 tag
Lower Your Debt and Save More
The 15 Year Solution
Since the great recession of 2008-2009, Americans have been de-leveraging: that is, paying down debt and saving more. One worthwhile strategy for paying down debt and saving more is to switch to a 15-year fixed-rate loan, which is one significant reason we have seen more interest in the 15-year loan in the past year.
If a borrower can swing a few hundred bucks more a...
1 tag
Obama Pledges to Refinance Millions of Mortgages...
Housing got only a brief mention in President Obama’s highly anticipated jobs speech Thursday night. But it was a pledge that some pundits say is finally a step in the right direction. Others say it’s likely to have little impact.
Obama told Congress that his administration is going to work with federal agencies to refinance millions of homeowners’ mortgages at today’s record-low...