Lendingtree.com

As mortgage rates dipped even lower this past week, we got to thinking about the last time we saw rates like this  -  the 1950s. Let’s put the Tivo on pause and pretend we’re not reading this on the Internet. Lace up your saddle shoes and climb out of the bomb shelter for this brief retrospective on life back then.

With the end of World War II, an economic boom generated new jobs and expendable income. As troops returned from war, attention turned to the home; and as people moved to the newly-constructed suburbs, the Baby Boom generation was born. Elvis burst on the music scene and the polio vaccine was developed. At the same time, nuclear war fears sparked the creation of backyard bomb shelter. Here are some other ’50s factoids:

• In 1950 a new house cost $8,450.00 and by 1959 was $12,400.00, according to ThePeopleHistory.com website. Mortgage rates between 4% and 4.5% were the norm.

• Televisions sets, now affordable, lit up our living rooms. We watched shows about a freakishly perceptive dog called Lassie, a little-too-perfect family in Leave It to Beaver, and fell in love with I Love Lucy, according to Fiftiesweb.com.

• Disneyland opened in California in 1955.

• Rosa Parks refused to give up give up her bus seat to a white man in 1955, becoming a symbol to the Civil Rights Movement.

• Favorite foods to munch on included meatloaf, deviled eggs and Swanson Frozen Dinners, according to Houston Press blogs.

Even with all the changes, we’ve gone back in time with 30-year fixed rate mortgages now at an average of 4.56%, according to the latest figures from Freddie Mac (the average for 15-year fixed rate mortgages also slid down to 4.03%).  That’s the lowest since Freddie Mac started tracking rates in 1971. The Associated Press has reported that the last time we saw rates this low for home loans was in the 1950s when mortgages lasted just 20 or 25 years.

Feeling nostalgic? Refinance or get a new home loan through our LendingTee network of lenders.

Photo Credit: gbaku via Creative Commons

- By Anna Cearley, LendingTree/Tree.com

As a bonus, enjoy this public domain 1959 video (from archive.org/Prelinger Archives via retroracer3) of a family buying a car. It’s got some classic facial expressions.

Help us add to this list of ’50s factoids by including  your own memories and links below

U.S. Senator Kay Hagan of North Carolina dropped by LendingTree’s Charlotte offices on Friday and talked with us about the role of  financial literacy in helping people become more empowered in their personal finance decisions.

Hagan said she believes that a deeper understanding of finances can help people throughout their lives, and should assist them in making smarter financial decisions with both long- and short-term purchases.

“Credit is great for long term investments but it’s not good for buying your groceries or paying your bills.” she said. “We need to understand the difference.”

Hagan toured the LendingTree office and met with our CEO Douglas Lebda and other top executives to talk about financial literacy and the newly-formed LendingTree Foundation, a non-profit group that helps  individuals take control of their personal financial lives. She visited our Customer Care Center, where licensed loan officers help borrowers find the right loan product – even if it’s the same loan product they are already in.

Financial literacy is an issue that is particularly meaningful for Hagan (and it’s also part of the newly-signed financial reform legislation). As a state legislator in North Carolina, Hagan sponsored a law that requires all high school students in North Carolina to complete a course on financial literacy before graduating from high schools. We like what she has to say, too, because encouraging financial literacy is such an important part of our mission.

LendingTree has always been about empowering customers by providing choice, convenience and value in the loan shopping experience.

For example, as part of our long-term commitment to financial literacy – called the Smart Borrower program –  we created a series of easy-to-read guides that help people to plan and save for the future, a glossary of mortgage terms and personal finance calculators. A “Living with Debt” report detailed scholarly research underwritten by LendingTree and conducted by consumer credit expert Dr. Robert D. Manning, and much more.

We look forward to sharing ideas with Senator Hagan in the future, and in continuing to promote financial literacy.

- By Nicole Hall, Editor-in-Chief

The federal government wants us all to get smarter about how we spend and save our money. So, a new Office of Financial Literacy – part of the newly-signed financial reform bill – will develop programs meant to educate the American public on savings and loans.

The office is expected to create standards for financial advice programs and to help people find ways to avoid financial scams. Financial literacy is being promoted separately by other groups, too. The LendingTree Foundation, for example, is a recently-created non-profit organization that provides counseling to families in financial turmoil.

In Washington, D.C., Michael Barr, Assistant Secretary for Financial Institutions, told us in a phone press conference yesterday that the government’s financial literacy outreach is meant to help “individuals take the necessary steps to make themselves better educated about what it means to save and borrow, and to conduct the basic transactions in life.”

The attention on financial literacy is part of a much larger scope of consumer protections and other legislation that is meant to prevent a repeat of the recent housing and loan implosion that has repurcussions to this day. President Obama signed the legislation this week. A consumer cornerstone of this legislation is the creation of a Consumer Financial Protection Bureau. As part of the Federal Reserve, the bureau would have regulatory powers over lending activities.

Other consumer-focused aspects of the bill include:

• Mortgage lending changes that will make it harder for consumers to be hit with high fees and bad loan terms

• Capped fees on debit cards that could result in merchants passing on savings to consumers

• The elimination of most mortgage loan pre-payment penalties

• The creation of a simplified mortgage disclosure form

Only three Senate Republicans voted with 57 Democrats to support the bill, which was a highly bi-partisan issue. Republicans have criticized the bill for increasing the government’s involvement in regulating financial issues and have said the legislation will lead to a bloated bureaucracy. Others say the bill could have unintended consequences that actually hurt consumers as financial institutions look for alternative ways to make up for lost revenue. For example, loans could become more expensive and debit card reward programs could take a hit as banks try to make up for the debit fee caps.

You can learn more about the bill from the Mortgage Bankers’ Association. MoneyTalksNews has a rundown on some of the bill’s main points, and so does FinancialHighway blog. Also, you can read “Will Reform Bill Protect Consumers from Mortgage Abuse?” on the LendingTree blog.

-By Anna Cearley, LendingTree/Tree.com

Photo credit: Adrian van Leen for openphoto.net (public domain)

What do you think about the financial reform bill – will it help or hurt consumers?

This is one of a series of blog posts highlighting personal finance stories on how to save money. We hope these ideas inspire you, whether you are repairing your credit – or preparing for a major purchase. Today’s post comes from HomeSpace blogger Stacey Boothe Snelling.

I recently took my 13-year-old shopping at Goodwill for jeans.

As you may have already guessed, she resisted, because it’s Goodwill, after all; but I was able to convince her to shop there first. If we didn’t find anything she liked, I promised her we’d go buy her some jeans at the local department store.

My daughter is pretty used to this kind of thinking since I’m what most of my friends and family call an extreme “bargain hunter mom.” It started in 1991, shortly before my first child was born; I bought the things everyone needs for a brand new baby – crib, car seat, high chair, etc. – from a friend of a friend who didn’t plan to have any more children. Price tag: $100.

We have, over the years, become somewhat more financially well off, though my three kids and I still live on a pretty tight budget. But having more money doesn’t mean that shopping for bargains can’t be fun or full of competitive strategy. Others seem to agree, too. I’ve noticed online discussions about which Goodwill stores have the best selections and about finding the best used clothes bargains.

I made my daughter go through approximately 200 pairs of jeans (yes, seriously – two HUNDRED pairs) at Goodwill that day. It took us just over an hour to flip through all of those jeans to find the right sizes and a style that would be acceptable to her (in other words, a pair she would actually wear!). We finally found about 6 pairs for her to try on, and three of them fit her perfectly. She was able to get all three for under $20.

You would think my daughter would be in a rush to get out of the store at that point – but no. Because we had saved so much money, she was able to talk me into also buying her 2 pairs of fuzzy pajama pants, a shirt, and a small stuffed animal – but we got it ALL for less than we would have paid for one pair of jeans anywhere else, so I was happy to do it!

Tips for finding the best deals at the Goodwill store:

1. Go in with an open attitude – it isn’t easy to find what you’re looking for, but you will if you’re persistent. You may even find something really great that you weren’t looking for!
2. Plan extra time to wade through EVERYTHING – you never know what might be there unless you really look.
3. Try everything on, if possible (sizes always run different from brand to brand) and always double check for tears or stains.
4. When you bring the kids, make it fun by asking them to be your assistant ‘bargain hunter’; it’s easy to afford a little toy as a reward for patience at Goodwill, as well.

• To find Goodwill stores in your area: http://www.goodwill.org/
• Goodwill also has its own online auction store, called Shop Goodwill: http://www.shopgoodwill.com/

**Share your own second-hand clothing tips and stories in the comments section below*

Photo credit: Xnatedawgx via Creative Commons.

_______________________________________________________

Got a good personal finance story on how you save money? Contact: Anna(at)treesd.com

_______________________________________________________

When it comes to buying a house, all those little fees add up. In fact, you can expect – on average – to pay an additional $2,670-$7,360 to close the deal for a $100,000 loan (see details below). And plan on paying more in closing costs depending on where you live: average closing costs (2009) were highest in Texas and lowest in Nevada.

That’s why the folks at VisualEconomics.com are providing you with this graphic, so you can be better prepared to set aside some extra cash to close the deal (click the image and then zoom in to read all the information). You can also use it to discuss with your lender any questions you have over fees. Know someone who is buying a house? They would be super grateful if you passed this graphic along. Just don’t forget to tell them where it comes from!

Infographic provided by CreditLoan.com

If you are in the market for a new home or car, color may end up playing a role in your decision. It tends to influence our attitudes towards a house (popular exterior paint colors here in the United States include white, beige and shades of gray) and is the reason why articles on “how to sell your home” typically address the best color choices to promote a sale.

A few recent reports also look at how color may also influence reactions –  from both neighbors and car thieves:

One Dutch study, as reported in the Huffington Post, suggests that thieves tend to avoid cars of a certain brushstroke for their poor resale value. The research determined that black, silver and gray cars were more likely to be stolen by car thieves than those painted lollipop shades of yellow, pink or red. In sum: a yellow car is probably better than a car alarm.

And what if you woke up one day to find your neighbor had painted their house neon green with purple trim? It’s for real in a Los Angeles neighborhood where neighbors are concerned that the house’s luminous exterior will affect their own property values. Though the residents have appealed to public officials for help, it appears that no one can force a color makeover since the area has no HOA-type guidelines outlining color schemes, according to The Los Angeles Times.

–By Anna Cearley, Tree.com

Photo credit: Sarah Klockars-Clauser, Open Photo

What’s your favorite car or house color?

The World Cup final definitely had its ups and downs for teams and fans, and as I watched the game I started to think how it’s possible to draw some analogies with buying a home. Having gone through that process myself lately, I think there are a few things we can all learn from Spain (the winner, for those of you who missed it). P.S. I know sports analogies can be goofy, but, oh well, here it is:

• It won’t always be pretty – In little over 120 minutes of play, there were 14 fouls which warranted yellow cards (warnings) and 1 red card (a player is sent off the field for a blatant violation, leaving his team to play one man short) in the World Cup final. Not to mention countless missed opportunities and failed attempts. In today’s housing market, tighter lending requirements, competition with all-cash buyers, and the uncertainty of a short sale can make the goal a challenge. That’s why it’s a good idea to get pre-approved and put together a strong game plan for your house search.

• Don’t forget to think competitively – Both Spain and the Netherlands showed up ready to play on Sunday, and the competitive spirit extended into the final minutes of the game. LendingTree can help you with this in your home search because once you submit your  new home loan or refinance form, you can get competitive bids from up to 5 lenders.

• It pays to surround yourself with a team you can trust – Andres Iniesta may have scored the winning goal, but Spain credits its trophy to copious amounts of teamwork. When buying a home, your real estate agent and lender are part of the team that will help you navigate the world of offers, loans, and paperwork. And it helps to have a track record of success. In case you are wondering, LendingTree’s network of lenders has served over 25 million borrowers.

• It’s never time to give up hope – After years of disappointment, Spain has finally won a World Cup trophy. The winning goal came in the 28th minute of overtime, less than 5 minutes from the end of play. You can draw inspiration from Spain when that place you’ve had your eye on turns out to look nothing at all like the picture online, or when your offer gets rejected, or contracts fall through. Just dust yourself off and keep your eye on the goal.

- By Lindsey Johnson. Social Media Administrative Assistant at LendingTree/Tree.com

photo courtesy of Wikipedia

We’ve got some new data that shows why it is so important – especially now – to shop around for the best mortgage rates and terms.

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Just take a look at this graph (you can click on it to see a larger version). On the left side, the gray shaded area is pretty small but then it grows bigger on the right hand side. Those gray areas represents the so-called “coupon spread,” which has nothing to do with deals at grocery stores. Instead, it’s a sort of marker to see how mortgage rates that are being reserved for borrowers compare to the loans that are actually funded, or securitized. This essentially reflect the profits pocketed by these originators for your loan transaction.

What this means: Loan originators these days are making a pretty nice profit off of the loans– which means there is room to negotiate on your end for better terms. Now, in order for this to really work in your favor, you have to have the right credit scores. But don’t get discouraged if your credit isn’t perfect. Even if you can’t cajole a sweeter deal, you still are financing with historic low interest rates (They dropped to 4.57% for a 30-year fixed-rate loan this week, according to the latest Freddie Mac Survey).

And before you start to get mad at the loan originators for making big profits, realize that a part of this large gray area on the graph has to do with less lenders being around in the aftermath of the housing meltdown. LendingTree Chief Economist Cameron Findlay says government policies are reshaping the loan industry into something that ideally will remain competitive yet manageable – which means those wide grey areas may not be around forever.

Learn more about what’s going on with these coupon spreads, and what it means for you, by clicking the audio button above from a July 1  interview with Findlay.

• Additional information on coupon spreads can be found on this blog post from Cameron Findlay.

FYI, if you are ready to refinance or get a new home loan,  LendingTree can connect you with lenders who will compete for your business.

Buying a home is an incredibly rewarding experience, but let’s be honest. For some of us, the process can be confusing and challenging even under the best of circumstances. I know a bit about this, because I’ve done it twice – most recently in April. For me, the analogy is like landing in a foreign country and not speaking the language.

As Social Media Director here at Tree.com (parent company of LendingTree), consider me your concierge to the labyrinthian world of housing, finance and loans. LendingTree has tons of resources and people ready to help, and I will do my best to help you find them with the assistance of our Chief Economist Cameron Findlay and Editor-in-Chief Nicole Hall.  We also want to build a collaborative knowledge community  - with the help of people like you, real estate agents and loan officers – around Twitter, Facebook and this blog.

Look for a livelier selection of blog posts on personal finance and economic trend issues, consumer information based on your questions, and insight on what’s going on here at LendingTree. If you are writing about some of these topics, get in touch with us – anna(at)treesd.com –  about doing some guest blogging.

A little bit about myself: I’m a former newspaper reporter with a specialty in online communities. I bought my most recent home through LendingTree before I was even hired here. Things worked out well, and I got to see first-hand what changes in the mortgage and housing industry mean for the rest of us. It also made me realize how personal finance decisions we make as individuals form the roots of the LendingTree experience.

Enough about me. Now we want to hear back from you. Being new here, I may not know all the answers to your questions, but I will do my best to help you find them. We invite you to share your thoughts with us, but please do so in a courteous way (see our blog comments policy). Your comments could result in us responding through email, directing you to talk with someone – or it might even inspire a blog post. Stay in touch!   — Anna Cearley

• Find us on Twitter: @LendingTree
• Find us on Facebook: http://www.facebook.com/LendingTree

The 4th of July is coming up, and that means plenty of bbqs, Independence Day weekend store sales, and fireworks. But as the fireworks and festivities are getting ready to start up, we’ve been busy watching rates go down.

Mortgage rates have once again hit historic lows. Yes, we know you’ve heard it before, but yesterday’s Freddie Mac Primary Mortgage Market Survey reported that rates beat the previous week’s record lows. Freddie reported 30-year mortgage rates at an average of 4.58. 15-year mortgages were at 4.04 and the 5/1 ARM was at 3.79. (Freddie Mac factors their figures with .7 points)

And here at LendingTree, we also saw a decline in mortgage rates offered from the previous week for 30-year mortgages and 5/1 ARMS. In fact, today’s lowest rates being offered via the LendingTree network include 4.25% (4.45% APR) for a 30-year fixed rate mortgage.  That’s cause enough for celebration for us!

Celebrate your own independence from high rates: Get free customized loan offers today to purchase – or refinance .

Photo credit: Beverly & Pack