Chitownproperty

When you’re a first-time home buyer, or hitting the market again after a long stay, the choice of mortgage options can be overwhelming. Any good lending agent or mortgage broker should educate you on your options, but this Loan Program Guide from the Sun-Times is a good primer for understanding the common mortgage plans [...]

The single most important thing to understand before you start shopping for a home is how much you can afford to spend. CNNMoney.com has a handy calculator that lets you plug in values such as your annual income, other debts like car payments or student loans, a proposed mortgage rates, and taxes to calculate [...]

From the Tribune, this article answers a reader question about paying down your mortgage–i.e. putting a little extra toward the principal each month–even when you already have a low interest rate:
One of the great benefits of prepaying your mortgage is that each prepayment is applied toward the principal of the loan. Because you’re paying interest [...]

In a press release last week, National Association of Realtors president Charles McMillan applauded the Federal Reserve’s move to purchase an additional $750 billion on mortgage-based securities from Fannie Mae and Freddie Mac and up to $300 billion in Treasury notes. “Greater numbers of home buyers will be able to purchase a home, and [...]

Mortgage rates dropped last week; the average 30-year fixed rate loan is now 5.37%, a full point lower than it was at this time last year. The lower rates come at the same time mortgage applications went up over 11%, as people take advantage of the discounts to refinance and buy homes.

House hunting within a budget from CNNMoney.com
CNN/Money posted this short video with tips for buying a home on a budget. We’re a little suspicious of such advice followed by a Porsche commercial, but the pointers are useful. Some highlights:

Shop for a home priced about 2.5 times your combined annual income
Be conservative when securing [...]

This American Life – Another Frightening Show About the Economy
Last week, Chicago Public Radio’s This American Life broadcast an episode in which Alex Blumberg and NPR’s Adam Davidson explain, in clear, frank language, what caused the current financial crisis, and what remedy we can expect from the current solutions being proposed by lawmakers. It’s [...]

Even in this climate, there’s no rule like an old rule — — chicagotribune.com
This week’s Tribune has a useful article about how longstanding “rules” of real estate still apply, even in today’s changing market. Buyers and sellers can count on certain maxims to get the best deal, regardless of the financial environment, including:

You [...]

Sale ain’t over till it’s closed — chicagotribune.com
You already knew that technically, your house wasn’t sold until you left the closing table and handed over the keys. But if you did sell your home in the past few years, you probably closed the deal mentally as soon as the buyer signed the contract.
Not so [...]

FTC.gov: Deter. Detect. Defend. Avoid ID Theft
Identity theft is a serious threat to your credit history, affecting your ability to secure financing for a new home. Unfortunately, this type of crime has only gotten easier online. The Federal Trade Commission has an excellent website to help consumers protect themselves against identity theft, with [...]

The good news is that mortgage rates are way down: 5.67% for a 30-year fixed loan this week. But the bad news is that the people who need to refinance the most–i.e. people who are trying to escape the leaping interest rates of their ARM–are the least likely to be able to do it, [...]

Since both the sales and mortgage markets have tightened at the same time, buyers can now take advantage of different incentives offered by developers. Some developers eager to sell new units are offering buy-downs, or paying to lower a buyer’s interest rate by a few points, to entice buyers who may be having trouble [...]

With the current environment of stagnant or even falling home prices, coupled with a tightening of the mortgage market, buying a home can seem like a risky proposition right now. But it carries the same risk it always has, provided you are realistic about what you can afford, says a marketing professor in this [...]

Once seen as a relatively easy way for buyers to stretch their resources and purchase homes they wouldn’t normally have been able to afford with a conventional mortgage, adjustable rate mortgages have quickly fallen out of favor. A general tightening of the credit market and jitters about home values have caused increasing numbers of [...]

This week CNN/Money examines common moves people take to make financial gains from their homes, like prepaying a mortgage, taking out a home equity loan, renovating, and getting an adjustable rate mortgage. Depending on your financial situation, any of these options can be good or bad. Read more and take advantage of their [...]