Mortgage Rates Settle Back Down
After an early spurt, mortgage rates settled back down as February was drawing to a close, according to two different measures.
HSH Associates, a New Jersey mortgage information and publishing concern which claims the largest database in the country, the average 30-year fixed rate mortgage dropped two basis points to 6.33 percent. HSH also said five-year hybrid ARMs shed two basis points to 6.12 percent. (A basis point is 1/100th of 1 percent).
Meanwhile, Freddie Mac, a major supplier of funds for home loans, has average loan rates a bit higher than HSH, but also a tad more below what they were at this time a year ago. At least both firms have rates heading down.
According to Freddie Mac's latest weekly survey, the 30-year fixed-rate mortgage averaged 6.22 percent for the week ending Feb. 22, down from the previous week when it averaged 6.3 percent. Last year at this time, the 30-year FRM averaged 6.26 percent.
The 15-year fixed loan averaged 5.97 percent, down from an average of 6.03 percent from the week before, Freddie Mac said. A year ago, the 15-year FRM averaged 5.89 percent.
One-year Treasury-indexed adjustable rate loans averaged 5.49 percent for the week. That's down from 5.52 percent the previous week, but higher than the 5.32 percent average a year ago. And five-year Treasury-indexed hybrids cost 5.96 percent on average, down 5 basis points from the week but the very same rate as this time in 2006.
"Mortgage rates eased a little more this week, as market participants were concerned over how much drag the slowing housing market may have on economic growth," said Frank Nothaft, Freddie Mac vice president and chief economist.
(As usual, fees and points should be included to reflect the total cost of obtaining the mortgage.)
Saving Energy
Here are seven simple steps you can use to help lower your energy bill:
- Change your Bulbs -- Compact fluorescent sell for about $3 each but last up to ten times longer than incandescent bulbs and can save $30 or more in energy cost over the life of the bulb.
- Lower your Thermostat -- Industry experts say 68 degrees is the lowest indoor temperature that most people feel comfortable. For each degree you lower your thermostat, you can save 3 percent on your heating bill.
- Turn Down Your Water Heater -- 120 degrees is considered comfortable and average in most households. Lowering your water heater from 150 degrees to 120 degrees can lower your utility bill by $1.80 a month. Not much, but it adds up.
- Keep Fireplace Dampers Closed -- An open or poorly sealed damper can draw air up the chimney even when the fireplace is not in use, creating a huge energy loss. on Have your Furnace Maintained Regularly by a Professional.
- Annual Tune-Ups -- Have your furnace checked every year by a professional. And keep the filter and vents clean. Dirty once cause the furnace to burn less efficiently, making it more difficult to heat your home.
- Know When to Close Curtains -- In our hemisphere, south facing windows receive the most intense light in both summer and winter. So open your curtains in rooms with Southern exposure in the winter months but close them during the summer. Letting in that light in the winter will help keep your house warm; blocking it in the summer will help cool things off. In both cases, you'll use less power to keep your house comfortable.
- Don't Run Exhaust Fans for Long Periods -- Kitchen and bathroom exhaust fans will remove heated and air conditioned air from your home if they run more than 15 minutes after you are finished cooking or running the water.
Direct Mail Scams
The Federal Reserve Board has alerted the public to instances of questionable solicitations directed at homeowners suggesting there is Community Reinvestment Act program entitling some owners to cash grants or equity disbursements.
Some of these come-ons may be read to indicate that the Federal Reserve endorses or supports the offers they contain. But they are really a deceptive effort to encourage consumers to apply for a mortgage loan secured by the consumer's home.
The Federal Reserve says no such federal programs exist, nor are they required by the CRA, a federal law enacted in 1977 to banking institutions which take deposits to help meet the credit needs of their communities, including low- and moderate-income neighborhoods. The act does not entitle individuals to any grants or loans.
The Federal Reserve also reminds that it neither endorses nor sponsors mortgage loan programs. "Consumers should be very suspicious of conducting business with lenders or mortgage brokers that make deceptive claims," the board warns. "Individuals who are considering taking out a loan using their house as security are urged to shop around. Comparing loan programs offered by a variety of different lenders can help consumers to get a better deal."
An online interagency pamphlet, Looking for the Best Mortgage: Shop, Compare, Negotiate, contains useful information about shopping for home loans.
Watch Those Credit Cards
Some 14 percent of all Americans have more than 10 credit cards, according to the latest National Score Index® study by Experian Consumer Direct, a leading provider of online direct-to-consumer credit reports, scores and monitoring products.
Perhaps even more worrisome is the finding that a like percentage uses at least half their available credit. The national average credit score for those using 50 percent or more of their credit lines is 645. That compares to an overall national average of 674.
"Using credit cards to purchase items now and pay them off over time is a convenient way for consumers to get the items they want or need that they may have never been able to afford if they had to pay in full at the time of purchase," says Ty Taylor, president of Experian Consumer Direct.
"Although credit is convenient, consumers should keep in mind that good credit management means being able to pay on time each month and paying off debt in a reasonable amount of time. Maxing out credit cards may also have a negative effect on their credit score."
