Baloney and the economy

I came across this article on Yahoo! News via The Motley Fool this morning that I have to share. I’m not going to waste anytime, so here you go.

Did you know that homeowners paid or will pay 580% interest in the first year of their 30 year mortgage?

Neither did I. But a Realtor in Mobile, Alabama wanted to enlighten the public and Dave Ramsey about this and tried convince us that United First Financial’s $3,500 computer software was worth every penny.

6 Money Matters to Stop Worrying About

I’m not a huge fan of Suze Orman. In fact, not much of one if I’m being honest. But, her latest feature in O at Home was one of the few Orman tidbits I can’t argue with. Simply put, it’s the soundest advice I’ve heard from her in a long time. Here’s how the article starts:

Foreclosure ‘crisis’ is overblown

One of the best articles on the so-called foreclosure crisis I’ve read recently was featured on MSN this week. Why the best? Because it is accurate, objective and completely devoid of any political agenda, which is more than could be said of news sites reporting on the U.S. economy. Here’s a brief excerpt:

Unorthodox tactic to sell a house

Barbara Scott, a home owner in Altamonte Springs, Florida is trying a new tactic to help sell her house in a slumping real estate market. While many real estate agents recommend more traditional methods to move homes, such as covering closing costs or repainting walls, Scott has thrown concert tickets into the deal.

The ‘coming’ credit card crunch would be a good thing

After reading the latest article on SmartMoney.com about the looming crunch in the credit card industry, I am more convinced that it wouldn’t be such a bad thing. In all honesty, I welcome it.

Gloom and doom in the U.S. economy is media hype

Everyone’s been hearing about the mortgage and credit meltdown in the U.S. and the media has been feeding on it like starving boas in a mice den. USA Today’s article yesterday, Bush: Economy is sound, despite credit woes is a prime example.

The mortgage rate freeze for subprime borrowers is not a bail out

I’m getting continually irritated by the media presenting the Bush Administration’s decision to keep lenders from hiking rates on subprime mortgages above a certain percentage. What the media has failed to do is write an accurate representation of what the freeze is and how it has no affect, whatsoever, on borrowers with conventional mortgages.

Times are tough for first-time home buyers

CNNmoney reported today that, although the real estate market is prime for buyers, hopeful first time home owners are struggling. With rising mortgage default statistics, qualifying for a mortgage is getting tougher and lenders are reducing the number of programs available to prospective home buyers. Lenders are now “demanding that customers produce larger down payments, more cash reserves in the bank, higher credit scores and less debt” which is making it difficult for first time home buyers to qualify. In all honesty, it’s about time.

Why home buyers should stay away from ARMs

Chances are, if you’ve been looking at buying a home, the adjustable rate mortgage has come into play. You’ve got to choose between a fixed or adjustable rate. The ARM sounds like a great idea because you can afford a much more expensive home and have a low interest rate. If you’re leaning that direction, I’d suggest you think twice.