Now is the Time to Refinance Your Mortgage

Now is the best time to refinance your home mortgage. Mortgage rates continue to hit record lows. The economy is showing signs of gradual recovery. Along with the job market. The government and some of the nation’s largest banks are setting up programs to help homeowners refinance their mortgages.

Low interest rates, government programs, and improving economic factors should lead to a large number of mortgages being refinanced. However, even homeowners that have excellent credit and mortgage payment history are having difficulty locking in a deal.

The main reasons why locking in that deal is such a problem are the low appraisal values of their homes and the tighter lending standards put in place by lenders after the financial crisis.

For homeowners that can face the wait and overcome these hurdles, the reward can be very substantial. Interest rates are at historic lows. According to the data released by Freddie Mac in their weekly survey of mortgage rates, for the week ending May 24, the average on the 30-year fixed-rate was 3.78%. That (Read More….)

Why There Are No Jobs

What a week.  On Tuesday the DOW finished the day at 13,279, its highest close since December 2007.  In terms of the stock market, we’ve crossed the great divide…December 2007, remember, was pre-financial crisis.

In fact, it was nearly a year before Lehman Brothers vanished from the face of the earth and black swans relentlessly descended upon the LIBOR like common ravens upon fresh Southern California road kill.  If you recall, when the sky was falling in late 2008, spread movements that were statistically not possible in a million years, somehow, happened every day.

Money market shares of the Reserve Primary Fund did the impossible…they broke the buck – falling to $0.97 cents a share.  Still, while the stock market may be back to where it was over four years ago, the world is dramatically different…

For one thing, back in December of 2007 you could buy a 10-year Treasury Note yielding 4.23 percent.  Today the 10-year Note Yields less than half that.  Of course, December 2007 was before TARP, CPFF, MMIFF, TAF, ZIRP, QE, QE2, Operation Twist, and all sorts of other harebrained schemes were put into (Read More….)