Mortgage Calculator

One would think that with the potential 5 or 6 percent commission to be made in a now-slower market that real estate brokers would be jumping at the chance to show G places, but some have been bewilderingly slow toeven return calls. So it was a refreshing change of pace when I responded to an ad for a place in Yonkers--just north of the Bronx and the city line--and the broker responded promptly and proactively to my inquiry.

Both purchases and refis broke their downtrends as rates collapsed in the second half of 2006. But rates are rising again. If the rise in mortgage rates continues, the “recovery” in housing will reverse into an unmistakable death spiral, exposing the fact that on this issue, as with so many others, the emperor (Wall Street) has no clothes.

Brokerage companies were on the Congressional hotseat after 2000 stock market bust. Now, it is mortgage brokers’ turn, facing the rising national foreclosure rate. The article “Mortgage Bankers On The Defensive” cites the claims from the Mortgage Bankers’ Association, such as:

You know that the paintings that Aunt Mabel gave you a few years ago are worth something; they’re not simple garage sale finds. But you haven’t actually done anything about it. Don’t you think it’s about time you got them appraised? And what would you do if they were stolen or damaged in a fire? Don’t you think it’s time for you to add them to your home insurance?

Once we get our tax refund back I need to look into getting some home insurance. Our home isn’t worth a whole lot, but I would like to be prepared in case something awful were to happen. You know how it is- insurance is one of those things that you shouldn’t be without, but you hope you never need.

Yo found only one other Chicago townhouse development with prices below the $300s, at 53rd and Millard in the West Elsdon neighborhood on the Southwest Side (housing prices are generally lower south and southwest of the city). The Arches, developed by Granite Development Corp and designed by Fitzgerald Associates Architects, is located on the site of the former Ida B. Wells and Madden Park housing projects.

Do you want to look into the crystal ball through the eyes of Federal Reserve Chairman, Ben Bernanke? Will that help you predict mortgage rates and housing prices for 2007? I try to outguess the Fed all the time and I’ve decided that we’ll see a significant decline in short-term interest rates by YE2007.