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Computerized Investing > August 11, 2012

The Truth About Mortgage

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by CI Staff

The Truth About Mortgage is an online blog run by Colin Robertson, a former account executive with a wholesale mortgage lender, that provides the public with valuable mortgage advice. Now that lending rates are at historic lows and many reports indicate housing prices have already bottomed, investors and homeowners alike are taking the opportunity to refinance their mortgages and buy properties. With some help, such as that provided by the blog, individuals are more likely to get a better deal.

The blog covers a wealth of information spanning from helping individuals understand their options to tips and tricks to better navigate the mortgage lending market. For instance, if you are not sure whether a 15- or 30-year mortgage is right for you, The Truth About Mortgage has an article that discusses both options. Instead of merely providing straightforward dictionary definitions it explains how a 30-year mortgage will cost much more in interest than a 15-year mortgage, but a 30-year mortgage can be safer and nearly as effective as the 15-year alternative for some investors.  However, the blog’s mortgage dictionary is quite comprehensive and provides links to more detailed articles as well.

By going on The Truth About Mortgage blog, individuals can read up on tricks that banks often use and thus will be able to better navigate the mortgage markets. For instance, when searching for the best mortgage rate, individuals naturally look for the lowest rate because they believe it gives them the best deal. However, some banks merely quote the annual percentage rate (APR) rather than the annual percentage yield (APY), which makes their rate appear lower, even though it might not be in reality. The blog explains the difference between APR and APY and how banks tend to quote mortgages using APR, which is always lower, while quoting savings accounts using APY, which is higher.

The blog is even useful for those who think they do not have any options, such as individuals who have their mortgage refinancing applications rejected. Many listen to television pundits raving about low mortgage rates and how now is the best time to refinance only to find out the bank will not allow them to. Fortunately, readers of The Truth About Mortgage may spot helpful articles such as the one about the Home Affordable Refinance Program (HARP), which allows those who qualify to refinance their underwater mortgages.

Even if you are not looking to buy or refinance, it definitely would not hurt to visit The Truth About Mortgage blog. You might even learn that you have more options than you previously thought. Best of all, the blog is entirely free.

The Truth About Mortgage

http://www.thetruthaboutmortgage.com/



Discussion

Jack in San Diego from CA posted over 2 years ago:

You have it backwards:

Interest Rates or APY are lower, and Annual Percentage Rates, or APR are always higher.

Why? Because APR integrates all the costs of the loan, added to the Interest Rate.

Doesn't anyone proof read before release anymore?


Joe Lan from IL posted over 2 years ago:

Jack, our statement is accurate. APR is lower. APY is higher. The difference between the two rates is that APR does not take into account intra-year compounding while APY does take into account intra-year compounding.

We do proof read everything. In fact, our firm has a dedicated editorial department.


Fernando Robles from FL posted about 1 year ago:

The article is entirely correct. Anyone can look this up in any finance book, or on the internet, for that matter.


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