Question by kmsca5: How hard is it to get approved for a housing FHA loan?
With the housing market right now the way it is. Is this even possible because it seems like you have to have perfect credit. This would be for a first time buyer that is looking at a house that is around 350k. Is this even possible? The credit history is excellent but the score is low. That’s due to only having one credit card and have never been late and the card is currently paid off. Thanks ahead of time!
Best answer:
Answer by Anthony
all depends on the lender you choose
http://www.yescredit.org
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Question by andersondb9: How does raising interest rates effect inflation?
When I hear on the news they are raising interest rates to slow the economy and inflation, viagra buy what do they mean? How does it effect inflation and does inflation ever go down?
Best answer:
Answer by kheserthorpe
Raising interest rates makes borrowing more expensive, both for individuals, and for businesses. Mortgages and lines of credit are more expensive, and companies have to pay more on bonds to issue them.
The net impact of that is that people (and companies) spend less. Spending less means there is less demand for goods and services.
Less demand for goods and services means companies don’t hire as many people/work as much overtime etc. There’s less pressure in the jobs market, less demand for raw materials, etc. and prices level off, or don’t raise as fast as they might have.
By contrast, when the economy is ‘overheated’, companies are growing ‘too’ rapidly, trying to meet demand for their goods and services, and end up trying to outbid each other for workers, oil, steel, etc. What does ‘too’ rapidly mean? It means that the growth rate is not sustainable, and eventually the higher prices would cause a recession.
Government banks attempt to use their influence on interest rates to ‘slow the economy’ when they think it is overheated, and give it a kick start when it seems ‘stalled’. The problem is, it takes 6-18 months for their actions to have their full affect, and they never know what the economy is doing today, only what it did a few months ago (since it takes time for them to collect data). So they are constantly trying to make decisions based on slightly old data about what the economy will be doing 6 months from now, and whether they need to try to adjust it. A rather imperfect science to fine tune. In general levels, however, it works quite well. There have been cases of countries inflation rates well over 40% a year, increasing interest rates rapidly brought them down. That part is fairly easy, its the fine tuning whether you want 2 or 3% inflation a year from now that becomes tricky.
You hear a lot about interest rates because buyers and sellers of stocks are _very_ interested – not just in when the rates change, but in the ‘fed’ (us federal reserve, who sets gov’t interest rates) commentary that suggests what they are planning for the future. Knowing that the Fed is planning to slow down the economy will certainly impact how you expect stocks and bonds to perform.
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Question by ambrosia: How/when may I deduct my FHA mortgage insurance premiums?
I purchased a home in December 2011 with an FHA mortgage. Upfront FHA MIP was collected on the settlement statement. During 2012, pharm I pay monthly FHA MIP as part of my mortgage payment and this amount appears to be included in my escrow payment. I checked online and it says my next FHA MIP payment from the escrow account is due in January 2014. I’m guessing that the upfront FHA MIP covered my first payment and now it is going to be collected monthly and paid by my bank annually? (1) I did not itemize in 2011, pilule is there any scenario that I can deduct some of that prepaid FHA MIP which was paid in 2011 for future months? (2) Is FHA MIP similar to real estate taxes where I cannot deduct the amounts collected each month, I have to wait until they actually pay FHA from my escrow account? Any guidance is appreciated! I tried to contact my mortgage company and all they could tell me is that MIP did not appear on their 1098s this year because they didn’t have time to update the form after the tax deal was passed.
Best answer:
Answer by Ryan M
1) No
2) Yes
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