MORTGAGE RATES » Home Mortgage Loan News

If you’ve followed the media recently you’ve probably heard that mortgage giants Fannie Mae and Freddie Mac are both struggling financially and may be in need of an overhaul. If this happens, it may result in the two receiving more bailout funds than they were handed at the onset of the financial crisis.

The irony in the potential failure of the mortgage lenders is that unlike the other companies that received bailout funds, these two companies have always been backed by the government. So how did they reach the point of needing a massive restructuring? To understand, let’s take a look at the downfall of Fannie and Freddie, as well as what overhauls these companies may need to get back on track.

If you are dissatisfied with big banks–perhaps the interest rates are low, loans are expensive or you’re just looking for friendlier and more personalized service –a savings and loan association may be perfect for you. S&Ls aren’t the same as banks and don’t always provide the same services, when one does offer the financial product you need, joining could result in huge benefits.

What is a Savings and Loan Association?

Housing market trackers are undoubtedly disappointed to learn that new home sales reached the second lowest one-month pace on record last month. According to a Friday morning Commerce Department report, new home sales in August dropped 29-percent from a year prior.

Consumers Don’t Want New Homes

The report revealed that new home sales paced out at 288,000 sales. While this isn’t the worst on record, it is close, being only a few thousands sales above the lowest, 282,000, which occurred in May 2010.

After personal homeowner details were found on mortgage documents, how much information should be disclosed to the government is a hot topic in Congress this week. Lawmakers are in the midst of a series of public hearings to determine what the data-collection process should be exactly to ensure homeowner privacy remains intact.

Adjustments to Wall Street Reform

The housing market just may be stabilizing with news that housing starts saw a 10.5 percent increase in the month of August, according to a Tuesday morning report from the Commerce Department. Representing the number of houses that home builders have built, this may be proof they’re feeling confident in their ability to sell. Just one question: Are consumers actually going to buy them?

Housing Starts Increase in August

Home maintenance can make the difference between being uncomfortable and cold in your home this winter or being cozy while the storms rage outside. It can also make the difference between manageable winter bills and bills that break the bank. Here are a few things you should do before the weather gets bad:

Weatherproof windows & doors. A few years ago, my husband and I realized we were always cold, even though we knew our rental was well insulated. Further investigation revealed that our back door had gaping gaps between the door and the frame! As soon as our landlord fixed the problem, we warmed up, and our natural gas bill went down.

The government has attempted to help out homeowners struggling with underwater mortgages in the past, but so far, there hasn’t been much success with the FHASecure or Hope for Homeowners programs. Though the number of underwater mortgages in the U.S. has decreased since March, it’s been due to an increase in foreclosures, not home values. That’s why a new option has just been set in motion, known as the FHA Short Refinance program.

Homeowners Walking Away from Underwater Mortgages

Many homeowners facing foreclosure are searching for any way possible to save their homes. It’s often a desperate situation that seems hopeless when the extra income just isn’t there and foreclosure becomes imminent. If you are one of the unfortunate Americans struggling to hold onto your home, there may be an option for you: Renting out a room.

Renting out a room in your house may give your monthly budget the boost it needs to pay down your outstanding debt and get your mortgage back on track:

If abandoning your mortgage loan and turning in the keys to your home has been on your mind lately then join the ranks of over one-third of homeowners in America. According to a survey recently conducted by the Pew Research Center, 36 percent of homeowners believe it’s acceptable to stop paying a mortgage and walk away from a home if the circumstances call for it.

Circumstances That Warrant Walking Away

If you’ve been excited by the incredibly low mortgage interest rates we’ve witnessed for the past few months, you’re not alone. Consumers and housing experts alike have been amazed by these rates, which to date are the lowest on record.

However, while everyone is marveling at mortgage rates, no one’s really doing anything to take advantage of them, as evidenced by record-low home sales. So why on Earth is no one jumping on them when they’re going to start climbing again sooner or later?