New York, NY, United States (AHN) – If it sounds like you have heard this before you are right. Mortgage rates have fallen once again to a record low.

On Thursday, mortgage giant Freddie Mac reported the average rate on 30-year fixed mortgages fell to 3.89 percent in the current week. That is below the previous record low set three weeks ago of 3.91 percent.

The average on 15-year fixed mortgages inched down to an average 3.16 percent from a record low of 3.21 percent, also set three weeks ago.

Average fixed mortgage rates remained around 4 percent for most of 2011, but the record low rates did little to help the ailing housing market. Banks have been extremely tight with credit, few qualify for the record low rates and other don’t have the money to refinance.

And while foreclosure filings fell in 2011, the declines were attributed to procedural delays.

On a bright note, most experts agree that the worst of the housing market crisis is over.

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Washington, DC, United States (AHN) – Monday morning the Federal Housing Finance Agency announced new rules that will allow many more “underwater” homeowners, those who owe more than their properties are worth, to refinance at current historical low mortgage rates.

Up to a million borrowers are expected to take advantage of the new program, the FHFA estimates. Originally rolled out in early 2009, the program has fallen far short of the number of people it was expected to help.

Prior to the new rules, only borrowers who owed more than 25 percent more than their homes are worth could participate in the program. The new rules have no cap on how much a borrower owes.

Only mortgages backed by Fannie Mae and Freddie Mac will be eligible under the new rules.

Officials hope the new rules will help the ailing housing market and the flailing economy. By reducing monthly payments, more homeowners will hopefully avoid foreclosure and have more cash to spend, giving a much-needed boost to the depressed economy.

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New York, NY, United States (AHN) – Shorty before 2 p.m. Thursday, the Dow Jones Industrial Average was up about 75 points, on track for the market to close up for its third consecutive day.

Driving stocks higher was news out of Europe that progress continued to be made in the region’s debt crisis. Also helping stocks were better than expected September sales from domestic retailers and decent job gains.

Earlier in the day, mortgage giant Freddie Mac reported the average rate on the 30-year fixed mortgage fell bellow 4 percent for the first time.

Shares of Apple were off about 1 percent, trading at $375 following news that the company’s legendary CEO, Steve Jobs, passed away Wednesday night after a long illness.

Yahoo was active after rumors flew that Microsoft was mulling a bid for the company.

Precious metals were once again looking precious. Gold was up over $8 an ounce, silver was higher by $1.44 and ounce and platinum rose $22. Oil was also rising $2.19 a barrel.

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Yonkers, NY, United States (AHN) – The saying “the rich get richer and the poor get poorer,” is seemingly true based on a two-year study of the groups. For American households earning less than $50,000 per year, it has been far more difficult on the economic road to recovery than their more affluent counterparts.

For more affluent households, those earning $100,000 or more, economic recovery began as far back as February 2010—when the Consumer Reports Sentiment Index score for this group moved into positive territory (above 50). In that time, sentiment among this affluent group, which represents 18 percent of Americans, has continued to rise and has reached a two-year high of 54.8.

However in the same period, sentiment levels of households earning less than $50,000 bottomed out in October of 2009. Since then, sentiment has barely risen among this group that represents 50 percent of the U.S. population.

“We are seeing a tale of two very different recoveries,” said Ed Farrell, a director of Survey Research at the Consumer Reports National Research Center. “While things have been improving for the wealthiest Americans for some time, lower-income families still have very little to be positive about.”

Analysts believe the disparity in sentiment levels could be attributed to the fact that lower-income households have suffered more pronounced and frequent financial troubles throughout the last two years.

Estimates place the financial suffering among lower-income Americans as being three to five times the level of those earning $100,000 or more over the course of the recession.

One of the biggest areas of disparity between the two groups is in their ability to afford medical coverage and prescription medication. The percentages of home ownership is a clear predictor of the two groups. Ninety percent of affluent households claim to own a home while only half of the lower income group can say the same.

Even now, missed mortgage payments among households earning less than $50,000 have soared, and are approaching 9 percent in June. Among the more affluent Americans, missed mortgage payment claims are below 2 percent and falling.

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They may also give you advice on the amount of loan for you to apply for as most credit counselors would advise you against borrowing more than you could actually afford to pay unless you can see an increase of income in your near future. In many cases, a bad credit report will have a major effect on your finances when you are applying for a home loan. Generally if your credit score is lower than 600, it is probably wise if you attempt to increase your credit score by paying off your credit card debts or any other unsecured debt before you apply for a home loan. Although there are lenders that specialize in bad credit financing, it is always better for you to make sure your credit score is above 600 in order to allow you to obtain an affordable home loan. Most lenders will probably charge you a higher interest rate due to your low credit scores so by increasing your credit scores you can reduce the chances of paying higher interest rates. It may also be a good idea for you to put down a larger down payment for the loan you are applying for.

This will make up for the fact that your credit score is low. By putting down a higher initial payment, your creditors will most likely not charge you a higher interest rate based solely on your credit scores. They are likely to take your large down payment into account and consider a lower monthly payment for you. So it is advisable that you start collecting money for a big down payment to show your creditors that you are financially responsible despite your low credit scores. Some financial advisors would also advise against getting a bad credit home loan with adjustable rate. This is due to the fact that many adjustable rate mortgages start off with a very low interest but as interest rates increase, you might find that you are not able to afford the higher interest rate down the road. It may be wiser to take a loan with lower risks such as a loan with fixed interest rate and fair fees.

By doing so, you might be able to save yourself the headache and stress of trying to figure out ways to keep up with the increasing interest rates of an adjustable rate mortgage. There will also be no surprises in the future as you know you can consistently afford to pay your mortgage at the fixed rate. All in all, it may always be better for you to try to increase your credit scores to above 600 before applying for a home loan if you find yourself in a bad credit situation. It might take you longer than usual or even more hard work on your part, but in the long run you might be saving yourself more money in the future and avoid digging yourself another bad credit hole.

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Britain’s lenders are turning their backs on first-time buyers and other traditional borrowers, and granting mortgages to landlords instead amid signs of a new buy-to-let bubble.

Northern Rock this week joined an expanding list of lenders, including a Lloyds Banking Group subsidiary, pushing out new buy-to-let loans on better terms, while Santander is also preparing to enter the market.

In an extraordinary admission, Nationwide – one of the biggest mortgage lenders – says it would rather give mortgages to landlords than first-time buyers. Matthew Wyles, the society’s “distribution director”, told an industry debate hosted by HSBC: “As a lender, we would rather lend 75% LTV [loan-to-value] on a buy-to-let mortgage to an experienced buy-to-let investor, than to a first-time buyer at 95% LTV.”

Figures from the data provider Moneyfacts show that the number of buy-to-let loans available to landlords has doubled over the past year, with the pace of new launches accelerating in recent weeks. According to its research, there are 434 different buy-to-let loan offers currently available, compared with 215 at the start of 2010 and 330 just a month ago.

Behind the dash back into buy-to-let is the rise in rents in a market fuelled by frustrated first-time buyers who can’t find the finance for a home of their own.

This week, LSL Property Services , Britain’s biggest network of letting agents, said that rents were “powering ahead” in many parts of the country, especially London.

David Newnes of LSL, which owns Your Move and Reeds Rains, says: “Landlords are seeing demand for their properties go from strength to strength. First-time buyers simply can’t afford the average £25,000 deposit required and, as a result, most are remaining in rented accommodation for nearly a decade.

“The growing demand continues to outstrip supply, and this is pushing rents upwards beyond the rate of inflation, and well above wage rises.”

Big lenders are also easing constraints that were put on borrowing during the credit crunch. According to the Council of Mortgage Lenders (CML), £3bn worth of loans were granted to landlords in the last quarter of 2010 – substantially below the peak levels of 2006 and 2007, but up 42% over the year.

The CML added that the average loan ceiling for investors – the maximum amount an individual landlord can borrow from a single lender – has risen from £2m to £2.5m over the past year. Separately, maximum LTVs on buy-to-let mortgages have edged up in recent months towards 85%.

State-owned Northern Rock , which this week cut rates on buy-to-let loans by 0.4%, will offer landlords mortgages on up to 10 properties, worth up to £3m. Landlords need prove an income of only £25,000 a year to start qualifying for buy-to-let loans. Meanwhile BM Solutions , a division of Lloyds, is promising a “one-minute mortgage” deal for landlords.

Some of the specialist lenders that withdrew from the market during the credit crunch have now reopened for business. A name synonymous with the pre-2008 boom, Mortgage Trust , part of the Paragon Group, this week returned to the market three years after closing its doors. It promises cheap and simple mortgages for smaller landlords, starting at 3.99%, and what’s called “fast-track” underwriting through mortgage intermediaries.

Fast-track underwriting has a controversial recent history. In July last year, the Financial Services Authority (FSA) published proposals to ban fast-track and “self-cert” mortgages, effectively granted without stringent checks on an applicant’s income and ability to repay. It also expressed concerns about interest-only mortgages.

But unlike conventional residential mortgages, buy-to-let deals are not subject to regulation by the FSA. Interest-only lending to landlords is commonplace, and lenders are free to offer fast-tracking. In a note this week hailing the return of Mortgage Trust, Legal & General’s Mortgage Club told landlords that the loans would be subject only to “fast-track, credit score-based underwriting”.

The revival in buy-to-let has angered critics who argue that lending to landlords has prevented millions from buying a home. Matt Griffiths of the campaign group PricedOut says: “For anyone concerned about maintaining widespread home ownership, this is deeply worrying. Many young people are now being effectively disenfranchised from the property-owning democracy by buy-to-let investors. Buy-to-let benefits from both cheaper mortgage finance (via the use of interest-only mortgages) and tax breaks on interest payments, which means they can easily outgun any first-time buyer for the purchase of lower-end properties.

“This has been exacerbated by the growing tendency of first-time buyers to use repayment mortgages (over 90% did in December 2009), and the higher deposit barrier required by cautious mainstream lenders. This is deeply ironic, as buy-to-let activity has been much riskier and more volatile than lending for normal homebuying.”

Will the re-emergence of buy-to-let be a warning light to regulators and the Bank of England? Eight of the top nine UK buy-to-let lenders in 2007 have since been either rescued by the taxpayer, closed to further business or forced to undergo substantial retrenchment. PricedOut argues that, in the run-up to the financial crisis, buy-to-let disproportionally utilised the new financing opportunities created by investment bank securitisation deals, and was dominated by short-term and speculative behaviour. “It was the main conduit through which excessive credit availability has been transmitted and amplified into the UK housing market,” says Griffiths.

PricedOut wants buy-to-let to be regulated, but recent government intervention has favoured landlords. In the last budget, the chancellor unveiled a £560m tax giveaway on buy-to-let stamp duty bills.

Meanwhile tenants face an uphill struggle to save the large deposits needed to obtain a mortgage, as landlords push through rent rises much in excess of wage rises. LSL predicts that, at the current rate of increase, average monthly rents paid by tenants across Britain will hit £715 this time next year, and top £1,050 in London.

Property investment firm Assetz , one of the cheerleaders of the buy-to-let boom, said business had doubled over the past year and that landlords are fast replacing first-time buyers. Its chief executive, Stuart Law, told the industry magazine Mortgage Strategy this week that: “Lenders are making no secret of the fact that they would rather allocate the limited funds they do have to the lower-risk option of buy-to-let loans, with deposits of 25-40%, than first-time buyers loans with 90% LTVs . As a result, the buy-to-let sector is recovering at a remarkable rate.” Loans for landlords Buying to let Renting property First-time buyers Property Mortgages Housing market Patrick Collinson guardian.co.uk © Guardian News & Media Limited 2011 | Use of this content is subject to our Terms & Conditions | More Feeds

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“You don’t have to be able to read the Central Bank report or be a financial analyst, just go out on the streets, go in my constituency and ask, ‘Do you have a difficulty paying your mortgage, are you at risk of losing your home?’

“The trend over the last few years is that things are getting worst. More and more Bahamians are falling behind on their mortgages and are at great risk of losing their homes.”

He said it is no secret that the number one goal of most Bahamians is to be homeowners.

But right now he said the country in a situation where that now comes with growing risks.

Mr. Pinder explained that the government makes it quite clear that borrowing right now is challenged as banks are signing off on less consumer, business and home loans. “More alarming is that the quality of the loans out there are deteriorating, arrears are growing and it’s particularly on the private residents,” he said. “When more and more Bahamians are finding it difficulty to pay their mortgages, this is a direct indicator that this economy is not improving.

“Bahamians are continuing to struggle, the quality of life is deteriorating and this is not a message of hope to Bahamian people.”

The PLP MP added that he is now left to question what the BMC and its leadership are doing in formulating payment schemes to alleviate the pressure.

“But instead, under this government there is no compassion,” he said. “I am told that the Mortgage Corporation is going around and putting collection notices themselves on people’s homes and this is a government entity.

“This is the entity that was created for the purpose of assisting poor Bahamians with the long-desired dream of home ownership. I cry shame on this government.”

The BMC has long complained that thousands of Bahamians have defaulted on their mortgages, at last report the number of Bahamians who have fell back on their payments was up to 40 per cent.

While speaking with the Journal recently, BMC Chairman Dr. Duane Sands said the corporation is grappling with arrears of up to $80 million.

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