| Defaults fluster economy
They're being blamed for a variety of problems this week, including the Dow's tumble on Tuesday and the record number of home foreclosures announced the same day. During a speech Thursday in Boca Raton, former Federal Reserve Chairman Alan Greenspan said that defaults on subprime mortgages could negatively affect the broader economy if home prices continue to drop. Subprime loans, which carry higher interest rates, are made to people with poor credit ratings. Florida, which accounts for one-tenth of the country's subprime loans, could face more pain than most. "There's clearly some elements of a crisis," said Mark Vitner, Wachovia Corp.'s senior economist. What's the problem with subprime lenders? Some of the biggest, such as New Century Financial Corp., are facing serious financial problems.
Driving down cost of insurance products
SHOPPING around for cheaper car , travel and health insurance may not be as exciting as a little retail therapy, but you could end up saving enough money to fund your next buying extravaganza. It's simple to buy cover on the Internet as policies are easily compared and buying online can save hundreds of pounds. Moneyextra offers some top tips on ways to avoid paying over the odds for your insurance policies. Shop till you drop The price of any insurance cover can vary enormously so don't accept the first insurance quote that comes your way . By obtaining several quotes you can compare prices and ensure you are getting cover that meets your exact requirements. If you are changing your policy, always ensure you are buying like-for-like or you may discover you do not have the same level of cover when you come to claim.
Subprime Mortgages And The Refinancing Boom - Options Are Still ...
Editors Note: This is a great interview with someone that is in the industry and knows the situation sub-prime lenders are faced with. Steven Frank answers some questions potential barrowers may have, including whether to refinance their first mortgage, get a second or apply for a home equity line of credit. Here is the article: There are more than 19,000 mortgage companies in the U.S. and some of the largest and most reputable of them specialize in subprime mortgage refinancing. Steven Frank, Senior Vice President of Marketing at FlexPoint Funding identifies a subprime borrower as “someone with a FICO score below 620. He or she will pay between 1.5% and 2% higher interest for a mortgage, but there is no shortage of money or willing lenders in the subprime mortgage market." .
|
