November 23rd, 2007 categories: Finances, For Fun
It’s been a long time since single adulthood was just a hurried way station between adolescence and marriage. Today the median age of first marriage is rising for both men and women, and singles make up 41% of American adults 18 and over. In fact, most Americans can expect to spend fully half of their adult lives unmarried.
Singles are an increasingly diverse group. Being unmarried these days could mean living with an opposite-sex partner–as 9.8 million Americans did in 2005–or becoming a single mother by choice rather than necessity, a growing trend. Only about one-third of America’s 90 million unmarrieds live alone, and about 14% of single adults are over the age of 65. As what it means to be single changes, the growing economic clout of singles as a class means that cities can ill afford to lose them, as sociologist Richard Florida argues in The Rise of the Creative Class.
So what lucky cities stand the best chance of attracting this crucial class? Forbes.com answered that question in their seventh annual Best Cities for Singles special report. They looked at 40 of the largest urbanized areas in the country and judged them on culture, nightlife, job growth, the cost of living alone, online dating, the number of other singles and that ever-elusive quality, cool.
Minneapolis tied for twelfth overall, but here’s a look at how we ranked in each individual category:
#12 Minneapolis-St. Paul
*** Note our top 10 ranking in the ever-elusive “cool” quality! 
***
Singles 15
Nightlife 20
Coolness 6
Culture 9
Job Growth 20
Online Dating 25
Cost of Living Alone 28
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November 23rd, 2007 categories: Finances, Mortgages
True, lenders are getting a little testy, but here’s some advice from Alex Markels of U.S. News & World Report on making it easier to get that home loan you need:
With house prices falling and inventory surging, it might seem that home buyers have it made.
But lending standards have tightened, and even borrowers with good credit, steady employment and cash for a down payment will undergo more scrutiny when applying for a mortgage than just a few months ago. To make sure you pass muster, consider these strategies:
Pump up your credit score. Black marks, such as late payments or unpaid tax bills, remain on your credit history for seven years — even if you pay them off. But paying down other loans and reducing credit lines can improve your score in the short run. If you have a credit card that you don’t use very often, cancel it.
Bring proof. The days of “stated income” loans, in which lenders don’t require you to document what you make, are over. If you’re employed, be prepared to show your W-2 form for the previous year, and if you’re self-employed, your tax returns for the past three years. Other assets may require documentation, too. If you recently got money in a divorce settlement, you may be asked to show the actual decree.
Increase your down payment. The more money you put down, the better your chances of qualifying for a loan. Regardless of what you make or how good your credit, if you don’t have at least 5% of the purchase price for a down payment, you could be out of luck.
Decrease your loan amount. Don’t buy more house than you need. With prices falling or flat, your downside risk only grows with the more you pay. Besides, conforming loans under $417,000 are easier for lenders to sell in the secondary market and therefore easier to approve.
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November 23rd, 2007 categories: Finances, Mortgages
Here’s a look at the status of interest rates on two of the five common consumer banking products and the latest rates from Bankrate.com’s weekly national survey of large banks and thrifts conducted Nov. 21, 2007:
HOME EQUITY
Rates: 7.62 percent (line of credit); 8.04 percent (loan)
Rates on home equity products rose slightly this week. The average home equity line of credit ticked up 1 basis point, to 7.62 percent. The modest rise marked the second time in 10 weeks that HELOC rates have not fallen as they continue their slow descent toward the prime rate, which is currently 7.5 percent.
Meanwhile, fixed-rate home equity loans also moved up slightly, rising 2 basis points to 8.04 percent. Rates on home equity loans have remained virtually unchanged for months. However, qualifying for such loans has become more difficult for some borrowers. A combination of falling property values and tighter lending standards has left many institutions less willing to lend a high percentage of a home’s value.
For example, both JPMorgan Chase & Co. and Wells Fargo & Co. have announced that they will now require more home-equity borrowers to verify their incomes when applying for loans. This will make it more difficult for borrowers without solid finances to qualify for such loans.
It’s important to note that people with good fundamentals — sterling credit, low debt loads, stable incomes — have better odds of being approved for a home equity loan.
MORTGAGES
Rate: 6.29 percent (30-year fixed) Average Points: 0.35
Mortgage rates moved modestly in the past week, continuing a holding pattern that has lasted for about a month. The average 30-year fixed rate fell 3 basis points from the previous week, to 6.29 percent. A basis point is one-hundredth of a percentage point.
For the second consecutive week, the average 15-year fixed — a popular option for refinancing — fell 6 basis points, to 5.92 percent. Meanwhile, the average jumbo 30-year fixed rose 5 basis points, to 7.2 percent. It was the second straight week that the jumbo rose while 30-year and 15-year fixed rates fell.
Adjustable-rate mortgages fell slightly this week. The popular 5/1 ARM fell 4 basis points, to 6.15 percent. The one-year ARM also fell 4 basis points, to 6 percent.
While mortgage rates are holding relatively steady for now, the long-term outlook remains murky. On one hand, mild core inflation and the stock market’s recent dip, which have boosted bond prices and lowered bond yields, have helped contain upward pressure on interest rates.
But the joy may be relatively short-lived. Some experts insist that it is only a matter of time before high energy prices, a sinking U.S. dollar and other factors drive interest rates higher.
Check out Bankrate.com for information on the other three categories: Auto Loans, Certificates of Deposit, and Credit Cards. - Full Story
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November 23rd, 2007 categories: Finances, Mortgages
It’s not over, folks. There’s plenty of pain left to come for homeowners and investors already battered and bruised by the subprime-mortgage meltdown.
Consider that analyst Mike Mayo of Deutsche Bank predicted Monday that worldwide losses from bad subprime-mortgage loans will reach as much as $400 billion. To date, reported losses are less than a quarter of that total. And market strategist Ed Yardeni on Monday doubled the odds of recession in 2008, to 30%.
But even if we don’t know when it will end, we’re getting a much better idea of whom to blame. It’s a collection of regulators, Wall Street titans and too-smart number crunchers who were supposed to be providing adult supervision. Instead, they chose either to enrich themselves or to look away as others did.
Michael Brush of MSNMoney gives us a rundown of the worst offenders by naming some of the villains in a credit crunch built on irresponsible subprime lending in the United States. - Full Story
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