April 2008
Making English Out Of Fed-Speak (April 2008 Edition)
April 30, 2008 by MikeRosen · Leave a Comment
The Fed lowered the Fed Funds Rate by a quarter-percent to 2.000% this afternoon.
Because it is tied to the Fed Funds Rate, Prime Rate also fell by a quarter-percent. Prime Rate is now 5.000%.
Holders of home equity lines of credit and credit card debt benefited from the change and will see lower interest costs in [...]
It Doesn’t Matter What The Federal Reserve Does Today
April 30, 2008 by MikeRosen · Leave a Comment
The Federal Open Market Committee adjourns from its two-day meeting at 2:15 P.M. ET today.
Markets expect the Fed to lower the Fed Funds Rate by 0.250 percent in its press release but it’s not what the Fed does that matters to economy right now.
It’s what the Fed says.
If the Fed states that future rate cuts [...]
The 80/20 Rule Applies To Foreclosures
April 29, 2008 by MikeRosen · Leave a Comment
RealtyTrac released Q1 2008 foreclosure statistics and the data follows an interesting statistical phenomenon most commonly known as the “80/20 Rule”.
The 80/20 Rule states that 80 percent of the effects come from 20 percent of the causes.
In this case, 80 percent of bank repossessions in the first three months of 2008 came from 20 percent [...]
New Home Sales : How The Newspaper Headlines Mislead You
April 25, 2008 by MikeRosen · Leave a Comment
Newspaper headlines rarely tell the full story and today’s papers provide a terrific example.
From the Baltimore Sun (and others):
New-home sales lowest since 1991
8.5% March decline exceeds forecasts; prices also tumble
As always, there’s more to the story than the headline.
The Census Bureau reported a 8.5 percent decline in New Home Sales last month, but in the [...]
How To Determine When You’ll Get Your Tax Rebate
April 24, 2008 by MikeRosen · Leave a Comment
More than 130 million Americans will receive tax rebates this year as part of Congress’ $168 billion economic stimulus package.
Payments begin in about two weeks and range from $600 for individuals to $1,200 for couples, plus an additional $300 per child.
Not everyone is eligible for a full rebate, however.
For single filers earning more than $75,000 [...]
Considering Co-Signing For A Home Loan? Think About It First …
April 22, 2008 by MikeRosen · Leave a Comment
As mortgage lenders limit how much money they will lend and to whom, co-signing home loans is growing in popularity.
“Co-signing” a home loan is when a third-party — usually a parent or relative — promises to make repayments to the bank in the event that the borrower falls behind on his obligations.
Money experts usually advise [...]
Radon – A Health Risk In 1 Out Of 15 Homes
April 21, 2008 by MikeRosen · Leave a Comment
Radon is the number one cause of lung cancer among non-smokers and 1 out of 15 homes has elevated levels of the radioactive gas seeping into it.
Despite the risks, however, radon is a potential problem that many homeowners ignore.
Radon can enter a home at many different points. A partial list includes:
Earth and rock beneath a [...]
Simple Real Estate Definitions: Average Days On Market
April 18, 2008 by MikeRosen · Leave a Comment
In the world of real estate, Days On Market is the number of days between when a home lists for sale and when it goes under contract.
It is often abbreviated as DOM.
Average Days on Market is a similar statistic but instead of applying to one home in particular, it applies to all homes in a [...]
Basic Credit Scoring Tips For A Better Mortgage Rate
April 17, 2008 by MikeRosen · 1 Comment
Credit scoring is becoming more important to mortgage pricing so now would be a terrific time to brush up on your credit education.
If you understand how the system works, after all, you can make it work to your advantage.
One terrific place to start your research is at myFICO.com. Published by credit scoring powerhouse Equifax, myFICO.com [...]
If History Is An Indicator, Gas Prices Have Another 10 Percent To Rise
April 16, 2008 by MikeRosen · Leave a Comment
Average gas prices reached an all-time U.S. high Tuesday, touching $3.40 per gallon. San Francisco and Tulsa are the nation’s bookends at $3.94 per gallon and $3.11 per gallon, respectively.
But before you wonder if relief is coming to your family budget, remember that “rising gas prices” is a conversation we have every April.
Using data from [...]
