If you own your home and you are making payments on it each month, you might not think the mortgage foreclosure crisis will affect you in any way. You might even have great job security and you may be close to paying off your mortgage, but the number of foreclosures happening across the country may still have an impact on you.

If you own a business in one of the ski towns in the western part of the country, for instance, you may notice a large drop in sales and customers for the upcoming season. The fall season is typically the busiest for this area as people enjoy visiting states like Colorado, Utah and others for the great skiing opportunities. Some businesses in those areas depend on the tourists during this season for a huge chunk of their annual revenue.

Since these ski areas are often popular places for second homes and vacation properties, analysts are expecting these areas to be much less visited than previous years. Many people are having problems making their payments on their primary residences so they are letting their second homes go back to the bank through foreclosure. As a result, there will probably be a lot of empty homes in the tourist ski destinations this season and fewer customers for the surrounding businesses.

But even if you aren’t a homeowner, this foreclosure problem affects you. These foreclosures are the result of the banks not being careful enough when choosing buyers who qualify for a mortgage. Many of these people didn’t even have jobs or a viable means for affording their monthly mortgage payments. Because of what has happened the last couple years, banks are being ultra conservative with who they loan money to. This means the average potential homebuyer with a few dings on their credit but good job security and the desire to own a home will be denied a mortgage loan at today’s historically low rates. In many cases, these buyers may not even qualify because the banks want very good credit scores before they even consider your application.

A third result of the foreclosure crisis is that it is driving the housing prices down. With so many foreclosed homes on the market, that raises the supply. Combined with the decreased demand because of so many unqualified candidates, home prices are falling quickly and drastically. This means if you want to sell your home any time soon, you probably won’t get as much for it as you would like to.

This mortgage crisis is affecting everybody. It’s not just something that is affecting the irresponsible buyers and lenders who never should have provided a loan in the first place. Hopefully with all the lessons learned, lenders and buyers will be more responsible so this doesn’t happen again.

With mortgage rates as low as they are, there are many people dabbling in the real estate market that may not have considered dabbling in it before. Let’s face it. Real estate is a great investment if you are prepared to ride out the storms that are inevitable over the long term. Unfortunately, many people who have decided to get deep into the real estate market have believed some of the common myths and the investments haven’t turned out as planned. Here are some common real estate myths and the truth behind them in case you want to put some of your money into the market.

1. Rental properties are always a great investment. While rental properties typically provide a good return on your investment, the return isn’t always as high as inexperienced buyers expect. Many think that they will get between a 10 and 14 percent return on their investment each month, but it takes awhile for this to happen. There are still other costs that cut into the return, including taxes, maintenance and more. Of course, the more of the mortgage that is paid off, the higher your returns are going to be.

2. The cost of building homes is reduced during these economic times. While the prices of homes have come way down since the economic downturn of 2007, the prices of labor and materials to build those homes has stayed steady.

3. Adjustable rate mortgages are never a good idea. Many financial gurus say that adjustable rate mortgages are a bad idea and they should be avoided at all costs. While this may be a good rule of thumb, there may be a couple instances in which they are beneficial to the home buyer. For instance, if you only plan on staying in the home for a few years, you are better off getting an adjustable rate loan because the mortgage rates will be lower. However, it is always best to consult with an experienced and independent mortgage expert before making your final decision.

4. The real estate industry is an easy and laid back job. This is definitely not true and many people find this out after investing a great deal of time and money into the industry. Being successful in real estate takes a lot of long hours, hard work and frustration regardless of the part of the industry you are dealing with. Then there is the worry of the changing market, red tape and much more. If you plan on dabbling in the real estate industry, be ready to face some frustrations and put in the time and dedication necessary to make it work for you.

Taking advantage of today’s mortgage rates and buying a home is a great thing to do if you can qualify. With the idea of buying a home, though, comes the idea of searching for the ideal neighborhood. Of course, you won’t know all the nuances and other tidbits of information of your neighborhood until you have lived there for a while. But you can still look for some red flags and other signs that may tell you if it’s not the ideal fit for you or not.

1. Look at the businesses around your new home. This will be a great indicator to tell if this is the type of neighborhood that you want to live in. For instance, are there several tattoo parlors, payday loan shops and businesses like that? If so, you may want to look for a different neighborhood if you are a family with children. Of course, that’s not to say that these businesses or the people who frequent them are dangerous, but it is worth noticing to determine if you want to surround yourself with these types of establishments before making your final decision on a house.

2. Notice the number of vacant businesses. A couple vacant businesses in and around the neighborhood is not necessarily a bad sign, but if there are several, it could be a sign that the neighborhood is in the decline. If you plan on staying in the neighborhood for a long time, make sure you take this into account before making your final decision.

3. Look for the police. If you see police in the area often, it could be a sign that a strong police presence is needed in the neighborhood. While seeing the police cars patrol your streets may give you a sense of security, it is also a sign that there are many problems in the area that require police involvement.

4. Take note of the streets. How quickly do the streets in the neighborhood get cleaned off during the winter months? Does the city make a habit of planting new trees and shrubs along the median or the sides of the street? Are the streets clean or piled with uncollected trash? Keep all of these questions in mind when evaluating your new neighborhood.

5. Are there neighborhood activities to participate in? Many neighborhoods have block parties, yard sales and other activities that all the residents can enjoy during the warmer months. When you take a drive through the neighborhood, do you see children playing in the yards and residents working in their flower beds? These are just a couple signs that this could be the neighborhood that is best for you and your family.

After several months of mortgage rates dropping to incredible and unbelievable lows, could it be possible that those rates are starting to head back up? According to reports by Freddie Mac, the average rates for a 30-year fixed-rate mortgage increased for the first time in five weeks. This week, the rates went up 0.02 percent from 4.19 percent to 4.21 percent. That might not seem like a large increase, but that’s because it really isn’t. During this same week last year, mortgage rates were around 5 percent so they are still at historic lows. To get these low rates for a 30-year mortgage, home buyers must pay 0.8 of a point, which is one percent of the amount of the actual loan.

Mortgage rates for 30-year fixed loans were not the only ones that rose, though. The current rates for a 15-year fixed-rate loan are averaging 3.64 percent, which is also a 0.02 percent increase from last week’s numbers. Last year those numbers were standing at about 4.43 percent.

In addition to this good news, housing construction is on the upswing. According to Frank Nothaft, the vice president and chief economist at Freddie Mac, September saw a 4.4 percent increase in construction of new one-family homes. That’s as high as those numbers have been in several months. But that’s not all. Homebuilder confidence also rose to its highest in October than it has been in several months.

These are all good snippets of news for the mortgage industry and for home buyers as well. One of the things that is holding the housing industry back, however, is that the banks are being more strict about who they will loan money to. Lending institutions are hesitant to loan money to buyers who do not have at least very good credit because that’s what happened before and that’s part of the reason for the mess the mortgage industry is in now. If restrictions were loosened a bit, the housing industry could bounce back quicker. What do you think?

Are you one of the chosen few who have been able to qualify for a home loan these days at the historically low mortgage rates? If so, you should pat yourself on the back because it’s simply difficult to qualify for those rates with the banks hesitating to avoid worsening the debacle that has become the housing market. But whether or not you qualified for the low rates, even buying a home these days is a feat within itself. Here are some smart tips to help you save money and be a responsible homeowner.

1. Avoid spending too much money on furniture. It might be tempting to buy all new furniture for your new house, but unless you have a pile of cash sitting around after making your down payment, this is a bad idea. If this is your first home, you are going to experience several more expenses that you may not have been paying before, such as insurance, property tax, water and more. If you don’t save your money for these extra expenses, you could find yourself in financial trouble. Buy furniture and decorations slowly as you have the money and your bank account will thank you for it.

2. Only hire reputable and qualified people to work on your home. Cutting corners when it comes to remodeling or fixing problems with your new home is a recipe for disaster. Always get estimates from a few contractors for the job that you want done and then research each company or private contractor. Choosing the one with the lowest bid just because of the price could mean more problems in the future.

3. Go to a professional for tax time. You might want to try to figure out how to do your taxes each year as a new homeowner, but you could cost yourself thousands in deductions. If it’s your first home, you probably aren’t aware of all the rules and tax guidelines that are designed to help you. A professional CPA stays current on the new guidelines which is why it is always better to go to a tax professional to maximize your returns and put more money back into your bank account.

4. Keep any receipts related to home improvements. This is important and will make tax time much easier for you and the tax professional you hire. When you make home improvements, you get tax benefits. But you have to keep your receipts to prove how much you spent on those improvements.

As a first-time homeowner, you are going to love the fact that you have your own home that is yours. Just be smart about your finances and you can enjoy the home physically and emotionally as well.

If you listen to the news in the mortgage industry, you might think everything is doom and gloom. From the fact that there are not enough buyers to buy the available homes on the market to statistics showing that mortgage modifications have only helped a fraction of the people they were meant to help, it’s tough to think that there is good news. But there is.

A recent expo in Sacramento, California was held to help troubled homeowners with their mortgages. It was part of the “Save the Dream” tour which is organized by the Neighborhood Assistance Corporation of America, or the NACA. These expos are being held in various places throughout the country to help people modify their home loans so they have a better chance of making their monthly payments by making them more affordable.

Shari Lewis of Elk Grove, California is one of the many people who have received help from this most recent loan modification expo. She attended the expo and was able to modify her loan and make the monthly payments much lower than they are now. She and her family moved into their current home in 2001 and found themselves struggling to make payments just a few years later. But the NACA expo has given her family renewed hope because they can now make the payments on their five-bedroom suburban home.

The NACA is a nonprofit organization that is funded by the federal government. In recent months, it has helped thousands of people reduce their mortgage payments by as much as $1,000 a month.

Another happy attendee of the expo was Althena Peet. She was so happy that the NACA was able to reduce her payments by more than $1,200 per month that she jumped up and hugged the lending counselor in tears who worked with her at the expo.

Of course, there are critics of the NACA and what it is doing. Some homeowners who have similar mortgage payments but make their payments on time each month despite their financial struggle are often not eligible for a reduction on their payments. This leaves many to question if the mortgage expos are fair to those who actually do everything they can do to make their payments. According to Paul Habibi, a professor at the UCLA Anderson School of Management, this is unfair because it “penalizes those who play by the rules, and those who are in dire need and may have not played by the rules and got into mortgage they can’t afford, are not able to get some help.”

How do you feel about this situation? Do you think it’s good that so many people are receiving the mortgage help they need? Or do you agree with Professor Habibi and think it is unfair to those who pay their bills regardless of the sacrifice? Let us know your thoughts below.

With millions of homeowners looking for ways to get more money to make ends meet at the end of the month, it is tempting to allow your mortgage payment to fall behind. After all, the banks usually give you a several months before they file for foreclosure on your home so you can always catch back up next month. But that’s really easier said than done. Have you considered reworking your budget to see if there are some things you can cut back on so you can make your mortgage payments? Or does the word “budget” give you the chills? Here are a few ideas people have about budgets that could be holding you back from tapping into money that you are needlessly spending.

Budgeting Means Reducing Your Spending
This could not be farther from the truth. When you have a budget, you can actually see where your money goes each month and how you spend it. When you have a plan for your money, you know exactly where your money is going. Instead of thinking of a budget as a restriction on spending, think of it as setting aside the money you need for bills each month and then making a plan for the money that is left over. You will notice that you will have more left over at the end of each month that you can use however you choose.

Budgets Have to Be Strict
There is no reason for a budget to be too strict. As a matter of fact, budgets should be flexible in order to be the most effective. Life happens throughout the month and things happen from the time you created your budget to the end of the month. Your budget should be created such that you can take money from other categories if an emergency pops up. Things like property taxes, car insurance, vehicle registration and other intermittent bills are often forgotten about and not included in many budgets.

Budgets are Not for People with Money
Budgeting is especially important for people who are on a fixed income, but they are also ideal for people with large incomes who have a great deal of money left over at the end of the month. In fact, it may be even more important for the latter type because that group is typically freer with their money. Regardless of your financial situation, a budget will help you see where all of your money is going. A budget also allows you to set aside money for savings, retirement and other types of savings.

If you can get over the stigma that the word “budget” has attached to it, you might find some extra money you can use to put towards your mortgage payments. Before you know it, you might even be able to make extra payments and have your home paid off earlier.