The FHFA has responded to criticism about their new fee structure. How does the fee structure for a conventional mortgage work and how does these changes impact a homebuyer’s interest rate?

The FHFA – the federal regulator for Fannie Mae & Freddie Mac -- set out new guidelines for interest rates and one part of the change has certain consumers with lower credit scores qualifying for lower interest rates than other consumers with higher credit scores. Someone with a 640 credit score in essence will qualify for about ¼% lower in interest rate on a 30 year mortgage than someone with a 740 credit score. This is flat-out wrong! How does this happen?

For many years, Mr. Dave Ramsey, debt solutions guru, advocates a position that no consumer needs a credit score. He claims that you can purchase a house or anything else without a credit score. He basically tells his followers that a credit score is a bad thing. Since he doesn’t understand FICO® credit scores, he pushes a position that is financially illiterate.

Things are changing in the consumer world. For the last couple of years, auto lenders have become more aggressive in their lending practices, making loans to those with less than-below average qualifications. Now, many consumers are defaulting on their auto loans, even after just one payment. It is raising alarms across all lenders.

Interest rates have jumped from the low 3’s to the low 6’s just this year. Principal and interest payments have jumped over 40% for many prospective home buyers. Many homebuyers have now been pushed to the side while more and more sellers try to move their homes. As a result of the sudden change, the housing market is truly in a recession and it will be creating more opportunities for many future home buyers.

Congress is on the verge of passing the Inflation Reduction Act of 2022. In this bill, it levies over $700 billion in new taxes and increase spending over $500 billion. Then it puts $200 billion towards “Deficit Reduction.” However, there is a lot of questionable spending. Part of this legislation includes $4 Billion for “A Study on Cow Burping.”  Not joking.

The price of automobiles over the last 18 months has skyrocketed – some over 50% in value – with the slowdown in auto manufacturing along with some other factors. However, a change is happening that could bring a lot of cars on the market. With a slowing economy, that could mean more opportunities for consumers looking to purchase a new auto.

Millions of consumers have missed payments on loans and their credit rating has taken a deep dive. The feeling is all-too-often overwhelming. Where do you start to try and rehabilitate a poor credit rating?

Everyone knows a friend or two that have invested into cryptocurrency. For the last couple on years, many investors have made some money. That has all changed recently when such investments have lost lots of value. Many young investors, dreaming of early retirement, face the recent prospects of losing all their savings from recent declines in cryptocurrencies. Finances can be very brutal.

Everyone is impacted from higher gas, food and other commodity prices. How is each consumer responding to this pressure on their finances? A number just came out that will have longer term implications for many into the future.