The Wall Street Journal published this interesting article called Blueprint for the American Home that describes the changes in design for today’s lifestyle. The best way to describe it is: “it’s designed for the way we live, not the way we aspire to live”. What a concept!

By: Dona DeZube

Some legislators say we don’t need mortgage giants Fannie Mae and Freddie Mac. What would happen if lawmakers got their way?

 

Some in Congress want to shut down Fannie Mae and Freddie Mac. They think the government shouldn’t be spending taxpayer money to support the mortgage market and that we should instead rely solely on Wall Street for mortgage market funding.

But that could cost you more than $1,000 a year in higher mortgage interest payments, and make it tough to find a 30-year fixed-rate loan when you want to refinance or buy. After all, Fannie Mae, Freddie Mac, and the FHA guarantee almost 90% of U.S. mortgage loans.

We looked at two hypothetical families—the Smiths and the Joneses, who each buy a $200,000 home with a 20% downpayment—and calculated how different their financial picture would be if one family didn’t have a government-backed loan.

Our scenario assumes a 1 percentage point difference in the two families’ loan rates. Some experts believe a 1% difference is conservative and would be even higher in a world without Fannie Mae or Freddie Mac guarantees.

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Your home is most likely one of your biggest investments. Unexpected repair or replacement costs of covered items can easily strain your budget. Plus, finding a qualified professional to solve your problems can be stressful and inconvenient. Many home warranties are renewable service contracts that cover the repair or replacement of many of the most frequently occurring breakdowns of home system components and appliances.

Basic coverage for most home warranties include: [Read more…]