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By Robert Nusgart and Robert Nusgart,SUN REAL ESTATE EDITOR | July 7, 2002
Well, here we go again. If you happened to miss the refinance opportunities of 1993, 1998 and 2001, the mortgage markets are giving you -- as well as borrowers looking to purchase a home -- another opportunity. Mortgage rates are bottoming out once again. But not only is the old war horse -- the 30-year, fixed-rate mortgage -- hovering around and even dipping below 6.5 percent, but those adjustable rate mortgages are becoming so tantalizingly low that people in fixed rates might just want to take a look to see whether they can better their financial circumstances.
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BUSINESS
Eileen Ambrose | November 2, 2012
The new rates for U.S. Savings Bonds are out. And at least the Series I bonds offer a better rate than you get at the bank. Series I bonds purchased this month through the end of April will earn an annualized 1.76 percent for the first six months. Series I bonds are inflation protected. The bond has two rates: a fixed rate for the life of the 30-year-bond and an adjustable rate that goes up and down with inflation every six months. New I bonds carry a zero percent fixed rate, and a 1.76 percent annual rate tied to inflation.
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BUSINESS
By JANE BRYANT QUINN and JANE BRYANT QUINN,Washington Post Writers Group | February 2, 1992
New York -- Looking for an alternative to a money-market mutual fund? Many investors are jumping to the new funds invested primarily in adjustable-rate mortgages. The first of these funds broke ground four years ago. Now there are 19, with more than $5.3 billion in assets, according to Lipper Analytical Services.Current yields on ARM funds run between 7 percent and 8 percent, compared with a 30-day compound average of 4.4 percent on money-market funds. Some ARM funds offer check-writing privileges, just as the money funds do. ARMs are guaranteed against default by the U.S. government or a government-backed agency.
NEWS
By Lorraine Mirabella and Lorraine Mirabella,lorraine.mirabella@baltsun.com | January 7, 2009
The economic turmoil of 2008 has left few bright spots, but here's one: Mortgage rates have plummeted. Rates on 30-year, fixed loans are hovering around 5 percent - the lowest level since Freddie Mac began tracking rates in 1971. Some economists predict a further slide in rates once Barack Obama becomes president and rolls out an economic rescue plan. And that could mean thousands of dollars in savings for Maryland homeowners. "The people who have done everything right are now going to benefit, and will be very well rewarded," said Mari Adam, a financial planner and owner of Adam Financial Associates Inc. in Boca Raton, Fla. "We are saying to our clients, anyone who can refinance should refinance.
BUSINESS
By Dian Hymer | May 1, 1994
How do I select an adjustable-rate mortgage?An adjustable-rate mortgage (ARM) is a home loan with an interest rate that fluctuates during the term of the loan. ARMs usually start with an interest rate that's about 2 to 2.5 percent below fixed-rate loans.ARMs are tied to an index, which is a measure of the lender's cost of borrowing money. The index is used as a basis for calculating the interest rate on an ARM. As the index rises and falls, so will the interest rate on the ARM.The longer the term of the index, the more the borrower is protected from short-term erratic interest rate fluctuations.
BUSINESS
By William Swislow and William Swislow,Chicago Tribune | September 20, 1992
CHICAGO -- Being vulnerable to interest-rate fluctuations is a risk house buyers accept when they select an adjustable mortgage for its low initial rate. But some borrowers have found they also are vulnerable to an unexpected variable -- errors by lenders when they periodically adjust that rate.Just how many mistakes are generated by the intricacies of the adjustment process -- which may come annually, every six months or at some other interval -- is a matter of debate.Of the 9,000 adjustable-rate mortgages, or ARMs, that Lake Bluff, Ill.-based Consumer Loan Advocates audited in 1991, 47 percent had errors, with about 78 percent of the mistakes being overcharges, company officials said.
BUSINESS
By JANE BRYANT QUINN | May 10, 1992
New York -- Memo to the 12 million homeowners who carry an adjustable-rate mortgage (ARM): Depending on which study you believe, and which lender you use, there's a 20 percent to 80 percent chance that you're paying the wrong amount each month.Over the past couple of years, a lot of publicity has been given to the high rate of error in adjusting monthly ARM payments. Still, many lenders haven't bothered to fix the problem. Last year, Consumer Loan Advocates in Lake Bluff, Ill., checked the payment history of 9,000 ARMs and found mistakes in almost half of them.
BUSINESS
By Andrew Leckey and Andrew Leckey,Tribune Media Services | March 4, 1992
Small investors in search of higher yields are turning to adjustable-rate mortgage funds, a relatively new concept that's rapidly gaining steam.The biggest fund that taps the housing market, Franklin Adjustable U.S. Government Fund, has $3.7 billion in assets and was founded in fall 1987. A number of other funds have joined it, offering the potential for higher yields than money-market funds.ARM funds invest at least 65 percent of assets in adjustable-rate mortgages, typically issued by a government agency such as the Government National Mortgage Association (Ginnie Mae)
BUSINESS
By Kenneth R. Harney and Kenneth R. Harney,(C) 1991, Washington Post Writers Group | March 17, 1991
WASHINGTON -- Operations Desert Shield and Desert Storm may be over. But Operation Mortgage Storm saw its heaviest action of the year in the past two weeks.Here's what's happening. Operation Mortgage Storm is what some lawyers have dubbed an ongoing, multistate, legal attack against alleged widespread consumer abuses in adjustable-rate mortgage (ARM) payment computations and escrow account overcharges on both fixed and adjustable loans.On the adjustable-rate front, large-volume, prominent lenders are being hit with class-action suits charging that consumers often are asked to pay too much when their loans reach rate-adjustment intervals.
BUSINESS
By BLOOMBERG NEWS | October 16, 2005
WASHINGTON -- Mortgage applications fell to the lowest level since April as higher interest rates slowed both refinancing and home purchases, according to a private group's survey. The Mortgage Bankers Association's gauge of applications declined 2.6 percent to 694.8 in the week ended Oct. 7 from 713.5 the previous week. The last time the index was as low was April 15, when it was 672.6. The average 30-year fixed mortgage increased to 5.98 percent in the week, the highest since the end of March and the fifth straight rise, according to the bankers group.
NEWS
By LARRY CARSON and LARRY CARSON,larry.carson@baltsun.com | August 31, 2008
While the nation's attention fixes on the two major parties' presidential nominating conventions, an increasing number of people in Howard County are facing foreclosure - a situation driving much of the economic downturn that candidates are pledging to solve. At Wilde Lake Interfaith Center in Columbia, a civic action group called People Acting Together in Howard (PATH) staged a foreclosure options workshop that illustrated some of the problems. The courts approved 411 home foreclosures in Howard in 2006, compared with 674 in 2007 and 425 through July of this year, said Circuit Court Clerk Margaret Rappaport.
NEWS
By Meredith Cohn and Meredith Cohn,Sun Reporter | March 30, 2008
Tough financial times can have lasting, and sometimes unexpected, impacts on the way people view their budgets, their community and the environment. "You should see my used car lot," said Tom Powell, sales manager at Jerry's Toyota on Belair Road northeast of Baltimore City. "People are trading in full-sized sedans, vans and SUVs and leaving in compacts and hybrids." He said $3 gas is behind the run. But not only will drivers save at the pump, everyone gets to breathe cleaner air, he said.
BUSINESS
By Ilyce Glink | February 15, 2008
The economy is going through a rough patch, and the stock market is well below its all-time high. Mortgage rates have been dropping since the end of last year. For homeowners, that can only mean one thing: It's time to think about refinancing your mortgage. "If you can save on the interest you're paying, then it's time to do a mortgage refinance," says Fred Glick, managing member of US Loans Mortgage LLC, a mortgage broker in Philadelphia. For some homeowners whose adjustable-rate mortgage (ARM)
BUSINESS
By Jay Hancock | February 8, 2008
Critics of American politics - generally from the left - often say there's no difference between Democrats and Republicans. Ralph Nader argued in 2000 that Al Gore and George W. Bush were virtually the same. Europeans like to say that all American politicians are conservative and that Barack Obama and Hillary Clinton would be mossbacks in Sweden or France. Of course the monochrome view is wrong. For a forward-looking example, see what the candidates say about the mortgage and housing crisis, today's biggest economic issue.
BUSINESS
By Carolyn Bigda and Carolyn Bigda,TRIBUNE MEDIA SERVICES | December 16, 2007
Holiday bills have you worried? Bracing for your mortgage payment to reset higher? Have a certificate of deposit coming due? In all three situations, the Federal Reserve plays an underlying role. And since September, that role has been to help push the interest rates on your credit card, mortgage and savings accounts lower. On Tuesday, the Fed lowered its benchmark rate to 4.25 percent from 4.5 percent, its third cut this year. In a falling-rate environment, here is what to expect, and what you may want to do to make the best of it: Monitor mortgage rates.
NEWS
By Jamie Smith Hopkins and Jamie Smith Hopkins,Sun reporter | December 7, 2007
The plan unveiled yesterday by the Bush administration to stave off foreclosures by freezing mortgage rates is aimed at Americans in the greatest danger of losing their homes when payments on their adjustable loans jump, but it offers little hope for people already in trouble. The rate freeze, generally for five years, would be limited to certain subprime borrowers with hardly any equity in their houses who can't refinance but who can afford their current payments. President Bush, who billed it as the industry's plan, said the major lenders that have signed on to the voluntary initiative also expect to help refinance subprime borrowers who are in better financial shape, either with FHA loans or other mortgages.
BUSINESS
October 26, 1997
One-year adjustable-rate mortgages may be the most popular, but according to a Freddie Mac survey, other hybrid ARMs are being offered by more lenders than ever before.Adjustable-rate mortgages that delay the first adjustment for seven years or more have become more popular with lenders during the past year, according to the 14th annual adjustable-rate survey conducted by Freddie Mac.According to the survey, 64 percent of the respondents are now offering a 7/1 ARM, which locks in an initial interest rate for seven years and adjusts annually thereafter.
BUSINESS
By Kenneth Harney and Kenneth Harney,1990 Washington Post Writers Group | September 30, 1990
WASHINGTON -- Controversy over alleged widespread overcharges on adjustable-rate mortgages intensified recently as attorneys filed two new class-action suits against federally chartered lenders.The suits, part of what attorneys and lending-industry experts say will be a nationwide campaign of litigation this fall and into 1991, seek redress for all adjustable-rate mortgage borrowers at two Indiana-based savings institutions.Officials at the S&Ls -- Permanent Federal Savings and Shelby Federal Savings -- were unavailable for comment on the suits.
BUSINESS
By Jamie Smith Hopkins and Jamie Smith Hopkins,Sun reporter | October 12, 2007
The number of Maryland properties about to be put on the foreclosure auction block more than tripled last month from a year earlier, as homeowners struggle with the one-two punch of mortgages they can't afford and homes they can't quickly sell. About 1,730 notices of impending auction were issued last month, up from about 550 in September 2006, Irvine, Calif.-based RealtyTrac Inc. said yesterday. The number of properties taken back by lenders last month after no one bought them at auction increased 10-fold from September 2006, to about 220. Though some might be commercial properties, the great majority are homes, the company said.
BUSINESS
By Gregory Karp and Gregory Karp,MORNING CALL IN ALLENTOWN, PA | September 23, 2007
Many people who thought they were buying the American dream of homeownership now realize they bought a heap of money stress. That's especially true if they're among the Americans facing mortgage foreclosure after seeing their adjustable-rate loans spike. A record number of homes entered the foreclosure process in the second quarter, the third consecutive record-breaking quarter, according to the most recent figures from the Mortgage Bankers Association. If you have a mortgage you cannot afford, your objective should be to forestall foreclosure so you can get current on payments, refinance or sell the house before foreclosure.
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