Home Buddies Quarterly Economic Report - Part 3 - Opportunities

By Cliff Pape

The past few weeks we have looked at an overview of the U.S. economy as a whole. Now we will look at what is likely to unfold in the mortgage and real estate markets next year. Then I will go over some opportunities that come up in this stage of the real estate cycle.

Mortgage Markets and Credit

It seems the biggest story coming out of 2008 is the Fed's announcement in November to buy up $600 billion in unsecured debt and mortgage-backed securities from Fannie and Freddie. The push is an attempt by the Federal Reserve and the Treasury to steer toward lower mortgage rates - not just lower short-term rates.

Whether the government will be able to accomplish it or not, the idea is to lower the cost and improve the investment of financing a property. The goal is to decrease debt costs to put potential investors or retail buyers with good credit back in the market to stabilize the economy.

Furthermore, if home buyers jump into the real estate market, this will further stabilize home values which will help the banks' balance sheets. All of this bodes well for mortgage brokers and loan officers because the ultimate goal of the government is to get mortgage lenders to loosen credit and they have committed to do it. At some point during 2009 mortgage lending should begin to pick up. Expect a refinance boom when the mess clears up.

The Real Estate Market

Here are a few things to look into for Houston. Markets like Houston have been running against the national economic trend, but even in Houston permits are starting to slow. If there is a continued slow-down in housing permits, we may be in it for the long haul.

However, layoffs will be the big indicator leading into 2009. If we experience substantial job layoffs then the already fragile housing market could experience a deeper setback.

Opportunities for Investors

The credit crisis has brought fear into markets whose economic fundamentals would not otherwise justify it. Therefore there may never be a better time to buy single family homes in Houston because the emotional fear does not match the fundamentals and prices have fallen below what they would otherwise warrant without the short-term, emotionally-driven fear.

Lastly, with the current credit standards, many buyers (including many investors) are no longer able to get financing for single family homes. Now there is an opportunity for investors with good credit (or those with other financing options) to buy investment real estate at below-market prices.

About the Author:

Home Buddies is a Houston credit repair coach for business and investors in real estate. Home Buddies develops and implements a customized strategy to restore credit and helps them overcome obstacles to financing properties and growing their portfolio.

Take Advantage of the Services of a Credit Repair Agency

By William Blake

When it comes to getting your credit in order, there is nothing better then taking advantage of what a consumer credit repair service can offer you. Whether it is a free credit repair service or one that you pay for, the consumer credit repair service is there to help when you need it the most.

A credit repair service with experience in the field will really be able to help you clear up blemishes on your credit. They will help correct any incorrect statements on your credit. They will also work to see if accurately stated credit problems can be resolved and removed.

Cleaning up a credit report is generally a long process. The process is even longer if the problems have been allowed to persist of a long period of time. That is why it is best to get help from a credit repair service the moment you see your credit slipping. The faster you act the better your chances are to correct the problems on your credit. No matter how long you have had problems or what the problems are, taking immediate action is the key. After that you must have patience as you work through your credit blemishes one at a time.

What Are The Fees?

There is not much in this world that is free and this includes the services offered by your typical consumer credit repair service company. Generally speaking, you will spend a few hundred dollars to get started with them and that does not even promise that everything is going to work out in your favor.

If you are having financial problems this may not be a welcome expense. However if a few hundred dollars will help you turn your credit around and put you in a better financial situation it may be worth the expense to seek the help of a credit repair service. Even if you are able to find a non-profit organization that is willing to help you, you will still most likely still have to come out of pocket for some fees.

There are several companies around that offer this service. They all have different experience and abilities and they all charge different fees. It is important to do your homework to be sure you find the credit repair service that will give you the most for your money.

Fees for credit repair services range from $200.00 to $1,000. With the many agencies out there and the wide range of fees you will need to choose carefully to be sure you use your money wisely and get the end results you desire.

About the Author:

Are you tired of struggling to keep up with your credit card debt? Learn how to deal with excessive credit card debt on the Debtopedia website. Visit http://www.debtopedia.com for a free copy of my "Secrets Of Credit Card Debt" report.

What To Look For When Searching Credit Repair Software Reviews

By William Blake

Bad credit is a common problem and there are thousands of people out there looking for help. Credit problems are a very private matter and most people don't want to make it public that they are having trouble. That is why credit repair software has become so famous. The advertisements are everywhere for latest and best in credit repair software that can help people turn their bad credit around.

Fixing your credit can seem impossible to someone who owes a lot of money to a lot of people. Unless they win the lottery, they may think, they'll never get their credit fixed. However, you can fix your credit all on your own and you don't have to pay any person or agency to help you. You can do it with credit repair software.

The best way to find credit repair software that is worth looking into is to see what other consumers think about software they have tried. Some software is provided free of charge. Some you have to purchase. The best aren't always the ones that cost money. But you have to do your homework to make a wise choice.

What Does Good Software Offer?

Good software will be user friendly and have good user support should you have any problems. When you are reading reviews you want to check to see what consumers say about these to aspects of the software. Also you want to be sure that its users were successful in turning their credit around and improving their credit scores. Once you get the opinions of other consumers see what the professionals think.

Consumer Reports

The experts also make their reviews on products and these can be found easily in consumer reports online or in books. When it comes to good credit repair software you wan to know what the computer experts think about the quality of the program. You also need a financial advisors opinion on what the software has to offer. These to points of view will help you choose the best software.

Even with the professional language and million dollar words you will be able to decipher whether a particular program will be a good buy for you.

About the Author:

Tire of struggling to keep up with your credit card debt? Get some simple ways to pay off credit card bill on the Debtopedia website. Visit http://www.debtopedia.com for a free copy of my "Secrets Of Credit Card Debt" report.

Use The Internet For The Best Auto Loan

By John Brennan

As the credit market is in complete chaos all new car buyers are beginning to stress about being approved for a loan. A new car means less repairs compared to buying a used car and gives a ton of unpriceable warranties and maintenance. Since a new car has a new engine - you are getting better gas mileage and cleaner emissions.

All new buyers have to keep an eye out for the complex rule of auto loans. Dealerships are now offering 0% interest during most of their sales which attracts a ton of customers. What you may not realize is how hard it is to get accepted for this deal. Banks on the other hand offer loans but they are at an extremely high interest.

Dealerships have now made this process even harder by using the "Fico Auto Industry Option Score" which only looks at credit based upon your car history; whether it be car payments or loans. So if you are a new car buyer, purchasing your first actual new car - the odds of you getting that oh-so-appealing 0% interest is like finding a needle in a haystack. This system cancels out your actual credit no matter how good it is, even from the big name credit bureaus like Equifax, Transunion, and Experian.

One good tip of advice is to research your credit report and credit score before going to the dealership. The new car sales team expects the buyer to be overly excited about the new car, that the small details in loan stipulations might be overlooked. Dealerships will promote their banks of choice (which helps them to finance their showroom lot) and often try to increase the interest rate on the loan by lying about your credit score. The best preparation is to have your financing organized a month in advance before you arrive at the dealership for a sale.

Buying a copy of both your credit report and score is probably one of the best ways to get a great auto loan. Although you are able to get the annual credit report, purchasing your monthly score is a great way to keep up to date. After figuring out your actual credit score while including the smaller unpaid disputes, spend some time to find a good bank online that offers great auto loans.

It is recommended to get a loan that is higher than what you actually plan to pay for the car. Assuming you get approved often times they write you a blank check that can be filled up to the amount of the car which gives you the freedom to barter with the salesman over the price of the car as you have a check and you know there are no hidden fees.

Other details to watch out for to make sure you get the best auto loan deal is that if you are trading in a car that still has a finance lien (you owe money on it), make sure that you receive in writing from the dealership that they will pay off that loan in the specified amount of time (10 days, for example). If they don't pay it off on time, you might still be liable for the old loan! It's important to review that major stipulations are written clearly in the contract.

Another important tip to review is purchasing "gap insurance". While you might get a great rate on your standard insurance from Geico or Esurance, gap insurance will cover you for the time that the loan still over-extends the value of the car (which will be the case for at least the first years you own the car). For example, you drive the car that you purchased for $20,000 off the lot, and once the odometer reading reaches 300 miles, it is considered a used car, the the value decreases to $16,000. If you totaled the car, or it was stolen, Geico or Esurance would only pay you that decreased value amount, and you would have to pay the bank out of pocket the $4,000, plus whatever deductible you have. Until the trade-in value of the car exceeds the amount of the loan you owe, a good idea when opting for the best auto loan deal is to factor in the cost of gap insurance as well.

About the Author:

To find out exactly how you can get information about car loan bad credit history visit my automotive website.

The Advocates For Fixed Rate Home Equity Succeed

By Seymour Tinkenger

There are arguments for and against taking out a fixed home equity loan. However, in a tight credit market, the advocates for fixed rate home equity succeed. Throughout the time of easy credit and low rates, various people took the benefit of adaptable rate mortgages, permitting them to buy a home based on a low interest rate. While the interest rate stayed stable, they benefited from this advantage. Nevertheless, as the prime went up, so did the rate on their fixed home loan and along with it their monthly payments.

Since the scheduled monthly payments are set up and founded on a set rate and the total dollar value spread across an amount of time, there's only one variable during a credit market fluctuation that can be changed; that's the interest rate. The scheduled payments will be changed to meet the new total over the life of the loan, something that does not happen with a fixed home equity loan.

Persons who borrowed in this kind of credit market on their home equity with an adjustable rate, may discover that even a modest raise in the prime can convert to a significant increase in their scheduled payments. One unpredictable item left out of the fixed rate equity loan may create much financial pressure for owners and their families so that they want to move to Spain to get away from it all.

Some equity lenders give reduced pay back schedule and at the end of the period, a 'balloon payment' is due. This means a larger, lump-sum payment may be steered clear of when you paid above the minimum payment or refinanced.

Fixed Rates Mean Nothing is Open to Change Although the interest rates commanded by a fixed home loan is perhaps a higher rate than a rate quoted for a variable rate, it is a risk that a lot of owners are eager to take. If the rates go up they win, because the price of the mortgage is fixed, unchanged by the market fluctuation. If the rates fall, then they will spend more money for their loan than had they used an adjustable rate, but it is a chance most are willing to take.

After watching friends and reading about many others who may have lost their homes on account of an escalation in interest rates, adjustable rate loans are not quite as attractive to as many homeowners, in particular those looking for a home equity loan. More than ever if their main mortgage has a fixed rate, neglecting to ask for a stable house equity loan might result in repayments rising so high, they end up losing their home by default.

While many lenders will advocate adjustable rate loans, while not necessarily wanting the rates to increase, these business owners stand to gain a windfall if the rates do swell. A fixed rates home equity loan permits the homeowner to precisely budget their money and not concern himself or herself about an escalating loan repayment.

About the Author:

Seymour Tinkenger continually writes summaries on information related to i want to move to spain. His publications on relocating to spain are published on his site .