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No Quick Fix for Housing Prices - Wall Street Journal
Foreclosures in Stockton, Calif., discourage prospective sellers from putting their houses on the market. The government's plan, which includes taking stakes in major financial institutions and temporarily guaranteeing certain new bank debt, could ...

Rx for our financial crisis - Los Angeles Times
Call it "a bailout in every pot": Having poured money into storied Wall Street institutions and major banks, the federal government is considering more aid for homeowners who are defaulting on their mortgages, along with billions in loans to help two ...

In mortgages, everything old may be new again - Los Angeles Daily News
Imagine a mortgage market in which you actually need good credit to get new credit. That's the market that awaits us once this global financial storm passes. But rather than being a new situation, it's actually how the real estate churn ...

California home sales jump 65 percent - BusinessWeek
Foreclosure-ravaged housing markets fueled a 65 percent jump in California home sales in September, as bargain hunters kept buying up heavily discounted properties, a real estate tracking firm said Tuesday. The surge in more affordable homes helped ...

Fannie and Freddie Offer New Plan to Help Homeowners - Time
Neel Kashkari speaks about a plan to ease mortgage payments through mortgage finance giants Fannie Mae and Freddie Mac during a news conference in Washington November 11, 2008. It is the boldest attempt yet by the U.S. government, which placed Fannie ...

'Underwater' Need Not Mean Foreclosure - Wall Street Journal
What does being "underwater" in your house really mean? Probably not that you're drowning. The number of underwater homeowners -- those who owe more on their mortgages than their home is now worth -- has been growing sharply since 2006 as real-estate ...

No quick fix for US house prices - The Australian
THE US Treasury Department's rescue plan doesn't directly address the root cause of the crisis: falling home prices. Foreclosures in Stockton, California, discourage prospective sellers from putting their houses on the market. The government's plan ...

Southland office vacancies rise, rents fall - Los Angeles Times
In a sign that the economic slowdown is affecting Southern California businesses, the rents on office space are down slightly over last year, and vacancy rates are up. In some parts of the region, office buildings that once housed mortgage lenders ...

Jump in sales, price drop may be signs - San Diego Union-Tribune
An unusual September jump in home sales, together with the biggest monthly drop yet in prices, could be early signs that San Diego County housing is approaching the bottom of a three-year-old downturn, industry experts and observers said yesterday ...

Obama's home front - Marketwatch
CHICAGO (MarketWatch) -- Economic concerns were at the forefront of voters' minds this week. And for many Americans, those financial issues begin at home. Between rising foreclosures and falling home prices, housing issues became a huge concern in ...

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Today's Mortgage Terms starting with I

  • Index: An index is usually a widely published market rate such as LIBOR, T-Bill or 11th District Cost of Funds (COFI). Lenders use these indices to set the interest rates charged on mortgage loans. For ARM, a predetermined margin is added to the index to calculate the interest rate adjustment.
  • Initial Rate: The rate charged for the first interval of an ARM loan.
  • Interest: Compensation in the form of money paid for the use of money.
  • Interest Rate Cap: Caps limit the range that the interest rate on an adjustable rate mortgage can change in an adjustment interval during the term of the loan.
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