NEWS FROM MORTGAGE DAILY

2010 Bankruptcies Top 1 Million

Consumer bankruptcy filings during August fell 8 percent from July, the American Bankruptcy Institute reported.

The decline followed a bounce in July.

Year-to-date Aug. 31, 2010, filings totaled 1,034,843.

SHOULD I PAY POINTS?

The decision whether or not to pay points can be derived at by considering how long it will take to recoup your initial investment, versus the monthly savings you’ll get by buying down the interest rate.

Example:

One point = $2000 buys down the interest rate .5% and reduces monthly payment by $50/month.

Dividing $50 into $2000, you will break even in 40 months or 3.3 years.  If you intend to retain the loan for more than 3.3 years, this would be a worthwhile investment.

BUYING ARTICLES

Buyers Walk Through Inspection Checklist (pdf)

Common Forms of Ownership in California (pdf)

Smaller Down Payments Help Qualify More Home Buyers (pdf)