Via a post on the Bogleheads forum, I read this piece of news from the WSJ Developments blog: Study Finds Underwater Borrowers Drowned Themselves with Refinancings From that WSJ blog post, I read this research paper: LaCour-Little, Michael, Eric Rosenblatt, and Vincent Yao, 2009. Follow the Money: A Close Look at Recent Southern California Foreclosures […]
Latest Blog Posts
Which Broker? You Don’t Need One
When people start investing outside their 401k or 403b plan for the first time, their very first question is often "Which broker?" The answer should be "You don’t need one." Vanguard is a great choice for beginning investors (and seasoned investors!), but Vanguard is not a broker. It’s a mutual fund company. Vanguard has a […]
What Is AAA, Really?
My AAA membership is up for renewal. I’m talking about the organization that provides emergency roadside service: towing, jumpstarting, and lockout. It used to be American Automobile Association. Now it’s just AAA. I have been a AAA member for a few years but I still don’t understand what AAA really is. I mean, is it […]
Does a Mortgage Escrow Account Pay Interest?
Escrow accounts are required to pay interest in some states. The mandated minimum interest rate can be higher than the interest rate you can get in the best savings account.
Buying a Car Extended Warranty
A family member asked me to help him buy an extended warranty for his car. I got the enviable job because the extended warranty costs a lot of money (over $1,000) and I have the reputation in the family for getting good value for money. Is an extended warranty on a car “worth it”? The […]
Why Are Some Companies Hated By Consumers?
Why are some companies hated by consumers while other companies are loved? That sounds like something Harvard Business Review would write about. And indeed, it has. In Companies and the Customers Who Hate Them, Harvard professors Gail McGovern and Youngme Moon said a company is hated when it sets adversarial rules to extract value from […]
Mortgage Ecosystem: Direct Lender
My mortgage refinance was completed on June 3. I made my first payment to my new lender today. I did the refi through National Mortgage Alliance (NMA), which is a division of a bank Georgia Banking Company (GBC). The name on my loan paperwork was “Georgia Banking Company dba National Mortgage Alliance.” Officially, I borrowed […]
Mortgage and Home Loan
I kept saying I refinanced my mortgage. Actually I don’t have a mortgage. Nor did I ever have one. A mortgage does not have financial terms. Refinancing it makes no sense either. The word "mortgage" is probably one of those most widely misused words that eventually the misnomer will trump its true definition. When people […]
Personal Line of Credit vs Credit Card
My personal line of credit is all set up. I tested it by making a transfer from it in the morning and transferring the money back in the afternoon. I don’t think I will owe any interest that way. It worked as advertised. A personal line of credit and a credit card are both unsecured […]
Home Valuation Websites vs Actual Appraisal
For my recent mortgage refinance, an appraiser came and did a full appraisal for my home. It cost $500. Here’s what the various home valuation web sites said what my home was worth, compared to what the appraised value was: % of Appraised Value Range Zillow 120% 107% – 130% Cyberhomes 100% 90% – 115% […]