Mortgage Debt Nears A Pre-Crash High, But That’s No Cause For Concern

Rising home prices have forced consumers to routinely take on higher home mortgage debt, which is set to surpass the amount of borrowing that occurred 10 years ago—right before the housing market crash. According to the Federal Reserve, outstanding mortgage debt totaled $10.2 trillion in the second quarter of this year, an increase of 2.7% over the past year. During the easy subprime bubble lending days, the total debt hit $10.7 trillion. In addition, consumers have been taking on increasingly higher non-mortgage debt, as they purchase new cars with borrowed money and pay college tuition with student loans. The growth in these non-mortgage debt areas has been rising at a faster pace of 4.6% from one year ago. In all, the total combined household debt stood at an all-time high of $15.7 trillion.

Should such trends be a source of worry for consumers and for the broader economy? What is the proper perspective? Read on to learn more.

The article is written by Lawrence Yun for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

Decoding The Great Real Estate Bubble – Loan Limits

If the Fannie and Freddie conforming loan limit in 1980 had only been increased by the rate of inflation, the limit at the peak of the bubble in 2005 would have been $280,000 instead of the actual limit which was $450,000 (in 2017 dollars).

Would the real estate boom have gotten as large as it did, if the loan limits weren’t increased significantly more than inflation over all those years? More stable real loan limits would have likely led to more stable home prices and a smaller real estate bubble.

The article is written by John Wake for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

Active Versus Passive Real Estate Investing: Which Is Right For You?

Real estate as an investment has become a hot topic over the past few years. The many fix-and-flip TV shows have something to do with it. Rental home investing has always been superior in many ways to holding stocks and bonds.

So, what’s right for you — active real estate investing or passive? Because the active side has been so popularly represented in the media, a look at passive real estate investment first is in order.

The article is written by Abhi Golhar for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

Is Another Market Crash Coming? How To Protect Personal Investments If It Is

One of the main causes of the last big recession in 2008 was subprime mortgages. In this case, mortgages were being handed out to borrowers with far-less-than-perfect credit, income that didn’t warrant a loan of the size they were approved for (in some cases, no income at all) and a job history that was spotty (or no job at all). Sounds like the perfect cocktail for a foreclosure fiesta, right? It was. Since then, subprime loans have all but disappeared. Or have they?

The article is written by Dani Lynn Robison for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

Five Ways To Tell If You’re Cut Out To Be A Landlord

Investing in real estate by purchasing rental properties can be a smart way to balance your portfolio, hedge against inflation and build long-term wealth. Not everyone is cut out to be a landlord, though — but even if you feel you’re not landlord material, you can get the same portfolio benefits by investing in real estate indirectly through a private loan fund or a real estate investment trust. Here are five questions to help determine if investing directly in real estate is right for you.

The article is written by Bobby Montagne for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

 

3 Best Places Where It’s Cheaper To Own A Home Than Rent

If you’re currently renting because you don’t think you can afford a home in your city, you might be surprised — in many major U.S. cities, it’s actually cheaper to pay for a mortgage than to pay rent for any home, according to data from Zillow. A recent financial study determined the cost of renting versus owning a typical house in America in the 100 largest cities by looking at how rent prices compared to estimated mortgage payments based on median home list prices.

The article is written by Andrew DePietro for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

This Is The Best Time To Buy Your First Home

If you want to buy a home, why is that? Here are some common answers:

  • Because I’m throwing money away on rent.
  • Because we want to start a family and owning provides more stability than renting.
  • Because I want a place of my own.
  • Because buying is always a good investment

Buying a home is fine if you can afford it, actually want to do it, and it doesn’t limit your ability to do other things that you truly value. But renting is fine, too. Don’t assume buying a house is a must, a requirement to be an “adult,” or a necessary milestone to hit before you can call yourself successful.

The article is written by Eric Roberge for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.

How To Lose The Down Payment On Your Home

Real estate purchase scams, sometimes called mortgage closing scams, are a form of BEC (business email compromise). The homebuyer gets a message they believe is from their real estate agent, loan officer or the escrow company instructing them to wire their down payment into a bank account controlled by the scammer. Because the attacker knows the date of closing, the amount of the down payment, the total purchase price, the property address and every other detail about the transaction, the homebuyer is unlikely to be suspicious.

If a scammer targets you for your down payment, little or nothing in the email will tip you off to the fraud. Never send large sums of money based solely on email instructions. Be especially wary about last-minute changes in instructions. If you’re an individual buying a home, pick up the phone and call the title agent to confirm the instructions, or, better yet, go to the office in person to pick up the instructions. Do not reply to a questionable email asking, “Is this the correct account?” and don’t simply call the number at the bottom of the email.

The article is written by John Wilson for Forbes. You can read the full article here.

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Sheila Abai is a senior mortgage consultant at PNC Bank. She utilizes her 20+ years of finance and mortgage experience to identify the best mortgage and refinancing solutions for her clients. Sheila can be contacted via email at Sheila.Abai@PNC.com or via telephone at 310-666-5959.