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Here is a Great Example of the Current Mortgage Backed Securities Market?
2009-06-05 01:08:00
If you have wondered why mortgage rates have been climbing, falling, and climbing again, here is a great view into the current mortgage backed securities market?   Mortgage backed securities have done three virtual freefalls in the last week and a half, only 8 trading days.  Since MBS pricing is what drives mortgage rates, those freefalls ...
More About: Market , Current , Great , Securities

Is the Air Being Let Out of the ?Mortgage Rate Bubble?
2009-05-31 22:17:00
To begin with, let?s analyze what has been happening to mortgage rates since my last post on the subject, just below and dated May 22, 2009.  Since then, mortgage backed securities have plummeted after breaking below their recent trading range on May 23.  While they have made back some ground, their virtual freefall has changed ...
More About: Mortgage , Bubble , Rate

Is the Mortgage Rate Bubble About to Pop?
2009-05-23 02:27:00
If any of you have been following my work, especially over at Florida Mortgage Daily where I post regular mortgage market commentary, you knew I coined the next bubble the ?Mortgage Rate Bubble ? a long time ago.  Others are now using the ?Bond Bubble?, focusing on Treasuries and not mortgage backed securities and mortgage rates, ...

Are You Having Trouble Figuring Out How Much a Trillion Dollars is?
2009-05-15 22:07:00
With the Obama Administration on a spending spree like no other president before, coming up with a $3.6 trillion budget for 2010, you would think the American public, among all the politicians, would be outraged at the potential effects that will result.  But then again, many Americans are only being able to comprehend how much ...
More About: Dollars

Money Merge Accounts: More Misleading Information
2009-05-10 22:45:00
It is hard to believe that I have been talking about these programs for more than two years now,  bringing to light the misleading, even false, information presented by the Money Merge Account sellers.  Don?t get me wrong, these bits of misinformation spread out on occasion to other mortgage acceleration product sellers, but the United ...
More About: Information

Is a Greater Depression in the Works? And What Will Happen to Mortgage Rate
2009-05-03 16:20:00
Chances are that you have seen articles and other media types reference the relationship between the Hoover-FDR regime and the current Bush-Obama regime.  Looking back to the time of the Great Depression (aka the Hoover-FDR regime), we can see shocking similarities that indicate history is destined to repeat itself, though this time may be worse. Now, ...
More About: Mortgage , Works , Rate , The Works

Equity Management Dead? Think Again!!!
2009-04-30 13:00:00
As promised, here is a post on the lunacy of those that just don’t get it.  Of course, this particular individual is an advocate for that complete waste of money program called the Money Merge Account.  I have proved time and again that there are much better ways to manage your debt and equity to increase safety, rate of return, and especially liquidity.  The latter is more important now than ever for two reasons.  Liquidity, aka cash readily accessible, is what is keeping some homes from facing foreclosure and allowing others to invest and reap great returns even in the current market.  The individual who wrote me thinks that since the stock market is down, that those whom were paying off their mortgage, especially through the MMA program, were better off.  That is actually a ridiculous statement as I will prove yet again, with facts of course. Besides the cash in hand reality, contrary to popular belief, those whom had their money in mutual funds u...
More About: Management , Dead , Equity

Fed Sees Contraction Slowing, Mortgage Rates Climbing?
2009-04-29 20:51:00
As I have mentioned numerous times before, the Policy Statement released by the FOMC at the time of announcing their decision on the Feds Fund Rate is the more important factor in determining which direction mortgage rates will move in the future.  I had expected a big shock to the markets, possibly even an increase in their MBS purchasing agenda yet again.  This time there was no “surpriseâ€�, rather a renewed commitment to the $1.25 trillion MBS purchasing spree, along with  the renewed commitment to use ALL available tools, including those not yet created I am sure, to open the floodgates of credit.  Let’s break it down… Information received since the Federal Open Market Committee met in March indicates that the economy has continued to contract, though the pace of contraction appears to be somewhat slower (no surprise hear as that is what the data has been indicating for a while now). Household spending has shown signs of stabilizing but remains constr...
More About: Mortgage , Rates , Climbing , Sees

Will the Federal Reserve Pay You to Borrow Money?
2009-04-29 04:55:00
As strange as that sounds, many moons ago I mentioned that the Fed, led by Ben Bernanke, would love nothing more than to pay people to borrow money and a study released yesterday proves I was right.  The fact is that Big Ben wants inflation so bad that he would be willing to pay others to borrow money if he could actually do that.  The study that was released yesterday morning stated that the Federal Open Market Committee (FOMC) was presented with the suggestion that the optimal interest rate would be –5%.  That’s right, supposedly the best interest rate would be to pay others 5% to borrow money, despite the fact inflation is near 2%, so the net loss on money lent would be around 7%.  That’s OK though, they don’t have to take the loss, they just pass it on to every American with increased taxes down the road.  Oh, and don’t be naive, those higher taxes will be coming, it is just a question of when. Nevertheless, since the Feds know that they canno...
More About: Money , Federal Reserve , Borrow , Reserve

Tax Planning: Everyone Should be Doing it
2009-04-23 17:36:00
I cannot tell you how many people I come across whom do not plan ahead for the tax year.  We just past April 15, the day personal taxes are due, and when many options for the last year expire.  Nevertheless, it is not too late to take advantage of some tax planning for this year.  Now, I am not an accountant, CPA, or even a tax preparer (except my own business and personal taxes), so what follows is just from my own perspective and may or may not apply to your situation.  If you don’t feel like looking through the thousands of pages of tax code yourself, I suggest seeking professional guidance as to how you can save on your taxes. OK, with the above in mind, let’s get into some possibilities for you.  Did you know that one of the best ways to save on taxes is by owning a small business?  That’s right, if you don’t already have own, you may very well want to start one, but don’t do it simply to save taxes or the IRS will get you.  There i...
More About: Planning

Long Time…No Postings: Lots of Information Coming Soon
2009-04-20 02:46:00
I know many of you that have followed my postings for a while have been wondering where I disappeared to.  Well, I needed to focus on other things, not the least of which were my taxes, which were 17 pages long for just my personal filing.  Fortunately, the business one was shorter, but all are very time consuming to say the least. Now that taxes have been filed and I am getting caught up on things missed, you can expect some posts this week.  I will be highlighting some of the questions and statements I have received about equity management, including one that proves his ignorance on the subject.  Of course, he is an advocate of the Money Merge Account, so that explains a lot by itself. I will also hit on the need for tax planning and how even those whom don’t itemize every year can save on their taxes.  Of course, one of the best ways to save on taxes is to have your own business, which if you need help finding one to start, I can assist you should you c...
More About: Information , Long

Why Mortgage Rates Dropped Slightly Today, And Why They Won’t Stay Down M
2009-03-18 20:43:00
No doubt, unless you are a hermit, you have heard the media talk about mortgage rates heading for 4%.  Heck, even Jim Cramer, you know that “Mad Moneyâ€� guy on CNBC, was praising Ben Bernanke for making this move today and even saying he just gave us 4% mortgage rates.  Of course, John Stewart (Daily Show on Comedy Central) showed just how good Jim Cramer is, and it makes you wonder just how much he knows about the markets and how mortgage rates are derived. So, just why is everyone in the media talking about 4% mortgage rates again? Well, it all comes down to the Fed’s Policy Statement and not just their rate decision.  Sure, the Fed kept the Fed Funds Rate at 0-0.25%, but statements released were what really is driving the markets nuts today.  Let’s take a moment and dissect it… Information received since the Federal Open Market Committee met in January indicates that the economy continues to contract.  Job losses, declining equity and housing wea...
More About: Today , Mortgage , Rates , Stay

"Would you like a side of hyper-inflation with your job loss and reduced fa
2009-02-24 16:44:00
That is the question our government would be asking you if they were your waiter.  While I was doing this morning’s mortgage market update, that thought came to mind as a great way to sarcastically explain the government’s actions thus far. With job losses mounting, the government claims they need to force through another stimulus package which creates more jobs, government jobs that is.  And they did exactly that, well not exactly as the amount of jobs they actually will create versus what they claim will not equal each other, and it will be inversely proportional to how much the cost is.  In simpler terms, they won’t create the promised amount of jobs and it will ultimately cost more than what they said.  Also, history shows that growing the government is exactly opposite of what the government should be doing, at least in a capitalistic society.  maybe the dessert selection will be socialism? I don’t think there are many out there ...
More About: Inflation , Loss , Side , Hyper

Can You Afford to Wait for Lower Mortgage Rates?
2009-02-13 19:56:00
Many of you reading this have been waiting for those government promised mortgage rates of 4.5%, or even lower.  Do you realize those rates may never come in actuality?  Can you comprehend how much money you are wasting by not refinancing or outright purchasing a property right now? First, let’s look at those of you waiting to refinance.  Since rates are currently around 5% and it usually doesn’t make sense to refinance with less than a 1% drop in rate, let’s put together a scenario.  You have a $200,000 loan at 6%, with monthly mortgage payments (not including taxes and insurance) of $1,199.  You are now faced with the dilemma of refinancing since rates dropped lower, down into the 4’s, but you didn’t take advantage of them and they have now risen to 5%.  You hear the media talk about lower mortgage rates, namely 4.5%, throughout the headlines and this causes you to wait longer in anticipation.  As we near the passage...
More About: Mortgage , Lower , Rates , Wait

"House of Cards" on CNBC
2009-02-12 15:35:00
I normally am against promoting any shows in particular as most forecast the doom of the market(s) they represent, but this one may be worth watching.  I have been in contact with a couple of people at NBC about this show and look forward to watching it, hopefully as it airs tonight, if not recorded for watching tomorrow. I will, of course, critique it after viewing, so look for my review in the near future.
More About: House , Cards

Taking a Break?
2008-10-12 05:22:00
Starting tomorrow afternoon, I will be on a cruise through the western Caribbean, and will not likely have internet access.  That means no posts are planned this week. I originally planned on uploading some reposts of prior materials, such as on Money Merge Accounts, financial wisdom, etc., however my automatic posting on schedule was not working ...
More About: Break , Taking

I?m Voting Democrat Because?(The Video)
2008-10-12 02:08:00
Just in case you didn’t like the earlier “top ten” list, here is a more down to earth video highlighting some of the best reasons to vote for Barack Obama and for other Democrat s across the nation in the upcoming 2008 election…
More About: Video , Voting

Top Ten Reasons to Vote Democrat
2008-10-11 22:56:00
I was emailed a longer list of reasons, so I narrowed it down slightly and placed them in a top 10 order for fun.  If you are offended, sorry, you must be a Democrat . Top Ten Reasons to Vote Democrat in the 2008 Election (ie for Obama): #10.  I’m voting Democrat because I believe that open borders ...

Fed Screwed Up: Grossly Underestimated AIG Risks and Upped Their Loan
2008-10-10 04:20:00
I have been biting my lips (bleeding profusely) over the last few weeks trying to stay out of the bailout mess and just let everyone else write about it.  After all, what I would say now, I have said over and over again and that is that any government intervention is surely going to be ...
More About: Loan , Screwed

Money Merge Accounts: A Good Way to Accelerate Your Mortgage Into Foreclosu
2008-10-07 12:48:00
I know I am going to get a lot of heat from the mortgage acceleration advocates out there, especially those selling the Money Merge Account.  Why?  Because this is a point they will never mention and will downplay forever saying it just cannot happen. Reality, as often is the case, points toward this very possibility.  Mortgage ...
More About: Good , Accelerate

The Financial Crisis, Your Emotions, and Your Money
2008-10-05 13:26:00
These days, all you have to do is read the paper or turn on your TV and you will think that your money, especially your investments, are rapidly becoming worthless.  Even many of the so-called financial gurus, such as Suze Orman, are telling you to get out of the markets, especially if you “feel” ...
More About: Money , Real Estate Investing , Financial , Emotions , Crisis

And Now for Something Completely Different
2008-09-29 21:28:00
Taking a line from Monty Python, I wanted to let you all know why I have not posted much lately and to inform you that there will be a big announcement coming in the near future that will make this headline make perfect sense. I am still working hard on my book as I want to ...

Government Regulation Versus Moral and Ethical Management
2008-09-24 21:56:00
First off, I am not going to get into all of the BS associated with the current bailout programs, that will be in a later post.  For now, let’s just focus on the headline and see just which is better. When reading the headline, almost certainly your viewpoint will be focused on the latter, that ...
More About: Government , Regulation , Management , Versus , Moral

Mayor Rudy Giuliani Meets the Florida Mortgage Report
2008-09-24 03:58:00
Mayor Rudy Giuliani unexpectedly crossed paths with me today and was nice enough to let me take a picture with him as he now endorses the Florida Mortgage Report and Florida Mortgage Daily.  OK, he doesn’t really endorse me, but that is likely since I was flying him from Tulsa, OK to Dallas (DFW), ...

Suze Orman Advises Opposite of Basic Financial Wisdom
2008-09-22 17:41:00
Granted, the current market environment is extremely volatile, but facts prove that making financial decisions prove more costly to your financial plan than simply sticking to your plan and riding it out.  Suze Orman, last week, advised her viewers during an interview on CNN to get out of the market if they “feel” they ...
More About: Financial , Wisdom , Basic , Opposite

New E-Book Coming Out
2008-06-07 14:45:00
In the next month or so, I am going to finish a book on how the economy affects mortgages rates.  I believe every mortgage professional, and any other professional in the industry who wants to show added value, needs to know how economic data, events, etc. impact mortgage rates and why it is so important ...
More About: Book , E-book , E Book

Just How Hard is It to Make Money?
2008-06-06 20:55:00
You know I am an advocate of investing versus paying off your mortgage, at least until you have your entire financial and investment plans fulfilled.  You know that the reasons come down to liquidity, safety and rate of return, the latter being the point I am going to target today. Most Americans, and especially those ...
More About: Money , Make Money , Hard , Make

Was the Jobs Data Misleading? Does It Really Matter?
2008-06-06 17:00:00
This morning saw the release of what is coned as the "Jobs Jamboree", the monthly data on what is happening in the jobs market.  Several reports come out showing employment data, including that on wages in general.  All of this data affects your mortgage rates indirectly. Just what did the data show this morning and ...
More About: Data , Matter

Blogging To Return to Normal Tomorrow
2008-06-06 06:10:00
That’s right, I am finally banging out the last 2,600 items from Outlook and heading into the writing blog posts again territory.  I will also be getting back to those of you that fell into the "follow up" category. As I stated before, I will be covering my viewpoints on several things that happened over ...
More About: Blogging , Return , Tomorrow , Normal

Florida Mortgage Report Turns 1!!!
2008-06-05 07:01:00
It was one year ago today that I launched the Florida Mortgage Report , though not at this location.  It has been only a few months with its own domain, yet it has a Google PR of 3, so I am excited about where this domain and the Florida Mortgage Report will be by the end ...