Posts tagged "mortgage"
In the news: ING Direct, Intuit, E-loans + home prices to bottom next year
I’ve been reading a lot lately… so when I find interesting patterns of news, I’ll post ‘em here… Today is all about Fintech companies in the news.
ING Direct has been talked about lately, yesterday about how online banks can offer lower mortgage rates and today about its ‘we the savers’ microsite.
Meanwhile, E-loan is exiting the mortgage business after posting an $87.4-million net loss in the third quarter. More details…
Intuit wins Forrester’s Groundswell award for company transformation. My observation as a social media person entering the financial industry is that in some respects it’s lagging other industries, therefore it’s refreshing to see a company like Intuit winning this type of award. More… (bottom of the page)
And in other news…
The Wall Street Journal reports that ‘Economists predict home prices will bottom next year.’ Yikes! Another year of this…
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The Upside Down American Dream
The drop in real estate prices has left many Americans upside down — meaning they owe more on their mortgage than what their home is worth.
Morgan at blownmortgage.com observes that some of these people have no problem making their payments, but are wondering if they should just walk away anyway. He says that for some, The American dream is no longer home ownership; It’s getting out of their home.
Are you upside down? What do you think? Add your comments at the end of this post.
Zillow Mortgage is But a (Very) Small Step Forward
Zillow today launched a mortgage product, which lets consumers anonymously request quotes from loan officers and decide who they want to go with.
You can read more coverage on TechCrunch, Mashable, Lenderama and BusinessWeek.
We’ve always believed strongly that the mortgage process needs to change in the interest of consumers. That’s why we launched SmartHippo last September at the TechCrunch40 conference. But Zillow’s new launch leaves us feeling kind of flat.
To be sure, they are an improvement over lead generation sites like LendingTree or LowerMyBills, which essentially just sell off your personal data to the highest bidder. Zillow lets the consumer drive the process, but that’s where the differences end. So, in a sense, they are kind of like a LendingTree v 1.1. You still only get to see quotes from people in their network, and you still have no assurance that these quotes will be accurate.
SmartHippo, on the other hand, is a completely new way of shopping for a mortgage. We are open and transparent. You can find rates supplied by both banks and individual consumers, and we have a community feedback mechanism that allows people to share experiences with and rate lenders and brokers whether they are member of our site or not.
What do you think? Check out SmartHippo.com and let us know, and be sure to follow our demo at FinovateStartup on April 29th for something new.
A Subprime Primer - A Humorous Look at How Things Went so Terribly Wrong
This “story” has been making the rounds on the Internet. It offers a hilarious (yet somewhat accurate) view of how we got into the mortgage crisis. If you know who the original author is, please let us know so we can credit them appropriately.
Tip: If you’re having trouble reading the text due to its small size, click the “expand” icon in the lower right hand corner immediately below the graphic.
Caution: This animation contains language some may find offensive.
Mortgage Foreclosure Scams Targeted by FTC
With foreclosures up 75% in 2007 over the previous year, it didn’t take long for con artists to find a way to profit. In testimony to a U.S. Senate committee yesterday, Federal Trade Commission officials described scams in which borrowers typically pay thousands of dollars but end up losing their homes and the money.
This video by Freddie Mac describes what foreclosure fraud looks like and how to spot it:
The FTC has launched investigations in seven geographic areas. If you’ve been the victim or a target of mortgage fraud, you can file a complaint online or by phone in English or Spanish by calling 1-877-FTC-HELP.
Top Eight Mortgage Tips for 2008
2007 was a difficult year for many homeowners as market conditions made it hard to keep up with mortgage payments. The mortgage market will continue to be challenging in 2008, as over $680 billion in mortgages are scheduled to reset. Whether you have a fixed rate mortgage, a variable rate, interest only or even a jumbo loan, there are things you can do to navigate the tricky world of your home financing.
Here is some advice from the team here at SmartHippo.com:
- Establish a budget. Your total housing costs – including your mortgage payment, insurance and taxes – should not exceed 26% of your gross monthly income. Your total debt payments – your housing payment combined with credit card, car loans or student debt payments – should not exceed 36% of your gross monthly income. A family with an annual income of $60,000 should budget a maximum of $1300 per month for housing payments, and $1800 for total debt payments.
- Beware the teaser rate. Some mortgage products offer an introductory rate that resets to a higher rate after a few years. This may make sense in some cases, such as when purchasing a property that will require repairs or renovations in the first year. But make sure the longer-term rate fits within the budget you established. Otherwise, you may be setting yourself up for trouble down the line.
- Manage your credit. Higher credit scores mean lower rates. Pay your bills on time. If you can’t pay them off in full, make sure you pay at least the minimum payment. Then, apply the remaining money you have to the accounts with the highest interest rates first.
- Talk to your lender. If you’re having trouble making your current mortgage payments, talk to your lender. Swallow your pride and do this before you start falling seriously behind on payment – at that point it may be too late.
- Shop around. Talk to your neighbors, friends, and coworkers and use the Internet to research what’s available. Remember that rates posted on bank sites are often not what you’ll get, so you’ll want to find out what terms people are actually getting.
- Compare apples with apples. Costs such as application fees, attorney fees, appraisal fees, and more may be included in one lender’s quote but not another’s. The devil is in the details, and not checking them out can cost you thousands.
- Protect your identity. Be careful with web sites that ask you to submit your personal information without knowing in advance who it will be seen by.
- Seize the opportunity. If you’ve weathered the storm, or are in the market for your first home, it’s a buyer’s market. Many banks offer foreclosures that are not listed with real-estate agents or on the Multiple Listing Service.
Do you have any tips to share with other hippos as we begin 2008? Or an experience (good or bad) you’d like to share? Enter your comments in the form below.
