Learning Center - Mortgages, Personal Finance, Home

Real estate investment trusts, or REITs for short, are investment vehicles used by businesses and individuals to invest in a diversified group of real estate assets.  The investment vehicle is similar to more well-known investment options known as mutual funds. In simple terms, REITs are the mutual funds of real estate and can therefore give us a good sense of the trend in home prices and mortgages. (more…)

We all knows that banks have been giving out loans much slower in the last few years than they have before. But have we considered the domino effect of this slowdown, other than the obvious?  (more…)

When you purchase your first home, you will be inundated with terms you may find difficult to understand. This is not your fault. The American educational system—even at the collegiate level—is woefully deficient when it comes to preparing us for real-world financial situations.  (more…)

It is starting to look more and more like the housing market is bottoming in many areas. As part of our continuous tracking of the housing and mortgage market, we look at three important measures of the health of a given area’s real estate market   (more…)

When the economy crashed, real estate and stock markets took a massive hit—a hit that they are just now beginning to recover from. This hit started what we now refer to as the “Great Recession.” In this period, many Americans saw their retirement savings—particularly 401ks—routinely post losses or, at best, minimal gains. Now, that the American markets are beginning to dust themselves off and make a comeback, it’s time for people to begin to set right their retirement accounts. (more…)

What factors affect the final mortgage rate at which willing buyers of homes and sellers of financing are able to agree?  In certain ways, the setting of rates can be incredibly complex, with a plethora of factors able to influence rates, including expected inflation, default probability, government regulation, and maturity risk premium, to name just a few. (more…)

Price conscious customers are always looking for the best deal. How often and to what extent do households shift their mortgage type or structure because of a lower rate and/or some other reason? (more…)

How much are you paying for the peace of mind of owning a free and clear home?

We are taught from an early age that debt is bad, and in most cases, carrying significant debt is not a good idea. If you are carrying a large balance on your credit cards, you should pay that off as soon as you can. If you have other secured or unsecured debt, you should pay that off as well. But when it comes to your mortgage, opinions differ regarding whether you should pay your mortgage off early or use the money for other purposes. (more…)

In the mid-2000s we saw what some might call the golden age of housing. In some places, such as coastline states like California or Florida, home prices appreciated as much as 30% in one year. In other areas of the nation, such as Texas and other natural resource rich states, home prices did not experience the steep run-up like California, but instead experienced steady home price appreciation with little home price depreciation when the housing market dropped. (more…)

What Modern Americans Can Learn from the Greatest Generation

In Part 1 of this series we suggested you examine your definition of wealth and in Part 2 we looked at how the American idea of wealth is changing as we speak. In this final part, we will examine what modern Americans can learn about personal finance from those who survived the Great Depression. (more…)

Some people have an eye for design, though I must admit I do not. When it comes to choosing my home décor, I need inspiration, a lot of it. Luckily there are many great home design bloggers to rescue those of us that are design challenged.  (more…)

Refinancing your mortgage is a lot like trading in a car – you’re looking for something better, but also don’t want to get ripped off.  And, just as the economy affects the demand, supply, and prices of new and used cars, so it is with home refinances, with such things as financial institutions’ willingness to lend, market demand for interest bearing assets, home owner confidence in their expected income streams and desired spending patterns all affecting the strength of the market. (more…)