> Columnist Peter Miller
Mortgage Rates Low, ID Fraud Rising, And Big Money Outside Art
by Peter G. Miller
Mortgage Rates Trend Lower In January At the end of 2003 a typical 30-year fixed-rate mortgage was available at 5.81 percent plus .7 points, according to Freddie Mac. Late in January the same loan was generally available at 5.64 percent and .6 points. Financing for 15-year fixed-rate loans dipped below five percent toward the end of January to 4.95 percent plus .6 pts. This means you could borrow $100,000 over 15 years and pay $788.19 a month for principal and interest -- or you could borrow for 30 years and pay $587.39. Attractive mortgages to finance and re-finance remain available. Low rates were an important factor in the booming home sales seen in 2003 and, so far at least, look good in 2004. How Much Is That Old Frame Worth? Every so often it seems that people re-decorate and that can mean exchanging old art for new. But before you throw out a dusty old painting from years ago, take a careful look at the frame. They "don't make 'em the way they used to" and that has lead to a market for used picture frames. If this sounds like small stuff consider this: Some empty old frames are selling for $30,000 -- or more. Even replicas of old frames can have five-figure selling prices. Want to know more? Try EliWilner.com -- and take a careful look at the art in your home. Streets may not be covered with gold, but that's not always the case with old frames. It's 10 O'clock: Do You Know Where Your Identity Is? Identity theft is emerging as an increasingly-common crime. The Federal Trade Commission received 516,740 complaints in 2003. Of these, 214,905 involved identity theft, which is 42 percent of all 2003 complaints and up from 40 percent in 2002. Among fraud reports, 55 percent were Internet-related, up from 45 percent in 2002. What to do? Make a point of checking credit card statements with care each month. Do not give out the three-digit code on the back of your credit card to phone callers. If someone calls regarding a credit card, call the company directly at their toll-free number -- the one on your bill, not the one given by a caller. And if you get unexpected e-mail directing you to visit an online site, beware: some fraudsters have created official-looking but fake sites to grab credit information. Buying With Nothing Down First-time buyers are among the most important groups in real estate. They make it possible for existing homeowners to sell and move-up -- and they also represent 40 percent of all purchasers according to the National Association of Realtors. Buying a first home isn't easy and new buyers often look for financing with little or nothing down, programs such as those backed by the Veterans Administration (VA), the Federal Housing Administration (FHA), private mortgage insurance (MI) or through state-backed plans (so-called bond-backed and mortgage-credit certificates or "MCC" loans). Now the Department of Housing and Urban Development (HUD) has announced that it will seek a new FHA program. Instead of requiring at least three percent down the new loan will ask borrowers for zero down, nothing. This program raises three ideas. First, efforts to help first-time buyers benefit everyone in real estate -- HUD estimates it's zero-down program will be used by 150,000 buyers, no doubt including some who would otherwise not be in the market. Second, there are already mortgage programs available with nothing down. The VA pioneered the nothing-down concept decades ago and today a number of well-known lenders offer financing with nothing down. The FHA plan will boost the concept. Third, buying with "no money down" still means cash can be required for closing costs, depending on how the sale agreement is written. For details, speak with your local real estate broker. | 
