New York, New York! I Want to Wake Up, with a Lender That Never Defaults

Today, the backing of the bond market by New York Insurance regulators was an enormous boost of support for the market. Now that investors think that there is a backstop behind deteriorating credit markets, the market may be steadier.

In other news: with the recently lowered targeted interest rates, people are realizing that bank margins will increase (watch your dropping CD and bank account savings rates) as they borrow money cheaper (from you) and lend it out. Of course we will soon see and hear the rush of loan commercials on radio and TV. But of course, apply only if you qualify (and qualify is a word with meaning now).

By the way, following up a previous post’s thoughts, I did nibble today at some holdings I like. Remember, keep your eyes open now for opportunities. If you do not pre-plan for such opportunities, then I feel sorry for you. I have mentioned to hoard cash – this is why – to use to buy in others’ fear if there is good reason; of course if you are not using reason, then I can’t help you.

Mortgage rates are shaping up nicely for conforming loans but still not so hot for jumbo loans. Keep tabs on your mortgage broker and be ready to refinance if the terms are reasonable and profitable. Oh and one more thing, after a meeting today, I realize that there may be risk out there with some brokers charging high commissions. Please consider running your truth in lending statement by an independent professional before taking a loan (e.g. real estate attorney, or financial advisor) because you do have a few days to review terms before you commit – take some time on a decision like this ok?

Chris Grande