Recent News

Downpayment Myths, As Told By The Mainstream Media

The Chicago Tribune Real Estate section tells us to think twice before choosing 100 percent financing. The headline is preying on fear and hides some obvious truths about no downpayment loans. Unfortunately, many people only read headlines. Without reading ahead, which of these two scenarios would you prefer: Crash your...

Two Simple Ways To Create Instant Liquid Reserves And Protect Against Foreclosure

According to Bankrate.com, while most people had money in a liquid account somewhere, only 39% had enough liquid money to last through three months of living expenses. If we know that 39% of Americans do have three months of savings, then we can reason that 61% of Americans don't. Now,...

How To Lock Your Mortgage Rate And Be Right 100% Of The Time

Mortgage interest rates -- just like stock prices -- change price daily and lately they've been trending higher. For the homebuyer that is "shopping" for a mortgage, or waiting for rates to fall, or just "hasn't gotten around to it", I implore you to make a decision one way or...

The Origin of the 20 Percent Downpayment Myth

A favorite mortgage myth of mine is some variation of: You can't buy a home without a 20 percent downpayment. Let's address why this is false, using history as a guide. It all started 50 years ago when real estate information didn't move as freely as it does today. There...

Negatively Amortizing Loans Are Only Evil If You ALLOW Them Be Evil

Negatively amortizing home loans get a lot of bad press. Some of it is deserved; most of it is not. If you've never heard of NegAm loans, maybe you know them by their more popular, "brand" names: Option ARM Pick-a-Payment ARM Deferred Interest Option Loan The basic concept of a...

Three Common Objections To Interest Only Mortgages, Rebutted Point-By-Point

MSN Money recently ran an article stating that interest only loans are bad choices for most borrowers. The headline ran as "Interest-only loans: not magic, usually not smart". Then, the next line: The last interest-only mortgage craze ended with a wave of foreclosures in the Great Depression. Today's interest-only ARMs...