Based on the "Making Work Pay" tax credit, employers now use new withholding tables to lower the amount of tax that is withheld from eligible workers' paychecks.

That means, you're probably receiving more money in each paycheck–up to $400 more per year if you are single and up to $800 more if you file jointly. While this sounds like a benefit, you need to make sure you don't end up paying in at the end of the year because you aren't withholding enough due to this rule.

What Should You Do?
Firs… Continue

When it comes to buying a home, consumers can no longer shop for a mortgage based simply on lowest interest rate quotes. Today's home buyer needs good advice from an experienced, educated mortgage professional who has the consumer's best interest in mind.

For consumers, this means beware of anyone who quotes you an interest rate over the phone or the Internet without asking anything about you, your family, your finances or your lifestyle. Besides market conditions, your mortgage rate is based o… Continue

Hello Friends!

Well this blog has been written much more reactive than proactive observing the past few trading days and now seeing the Feds are committing to purchasing $500 billion worth of mortgage backed securities between Jan 5th and June 30th. Just in the first 3 days, Jan 5th-7th, it was announced the Feds purchased $10.4 billion in those 3 days, which that amount makes sense as there are about 120 trading days remaining between now and June 30th, at an average of $4 billion a day to spe… Continue

The Chinese have a proverb: “May you live in interesting times.” And we are living through interesting times indeed.

Whatever the political posturing regarding the current rescue plan, a plan needs to be passed. Credit markets are frozen and banks are going bust every day. This is not totally because of "toxic" mortgages. This has a lot to do with FASB 157, also known as "mark to market".

Each day lenders must mark their assets to the marketplace. It's like you having to appraise your home eve… Continue

New York Times

By STEVEN A. HOLMES

Published: September 30, 1999

Home Loans extended to Sub Prime borrowers Encouraged

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those bank… Continue