Adjustable Rate Mortgages

The death of the American Dream has been greatly exaggerated -- just ask Sofiya Cherni. Since she arrived in North Dakota from the Ukraine 14 years ago, the 28-year-old has earned a college degree, found a good job, and bought and then paid off her first home -- by working hard, spending wisely, and keeping a sharp eye on the numbers.

After allegations of deceptive marketing from eight states, Wells Fargo has reached a settlement agreement. The bank will forgive $772 million in risky home loans and will pay $24 million to help reduce the impact of foreclosures on various communities.

Negative equity is linked to higher foreclosures. About a quarter of households with mortgages already owe more than their homes are worth. If prices slip further, up to half of all homeowners may end up underwater -- a scary prospect for Americans' financial health.

The new financial reform bill contains provisions that may drive up costs and reduce choice for consumers in the mortgage industry, The Wall Street Journal reports.

The money expert blasted Alan Greenspan's 2004 remarks championing adjustable-rate mortgages -- loans that played a key role in the financial crisis. Seems like the former central banker was a lousy personal finance guru.

News that business inventories and industrial production are rising suggests the U.S. economic recovery is on track. But unlike previous recessions, there are five potential "potholes" in the road ahead. Declining employment and increasing commercial real estate foreclosures are two possible biggies.

In a piece on the surge in mortgage rates over the past couple weeks, BankRate.com gets this brilliant bit of wisdom: There's another option: "We might even be back to looking at adjustable-rate mortgages," says Bob Moulton, president of Americana Mortgage, based in Manhasset, N.Y. He says some...

On Monday, Freddie Mac reported that 97% of prime borrowers who refinanced adjustable-rate mortgages in the fourth quarter opted to switch into fixed-rate loans. Of borrowers who were refinancing fixed-rate loans, an astounding 99.7% opted for another fixed-rate mortgage.In January of 2006, 41.9%...

Ken and Daria Dolan are widely known as America's First Family of Personal Finance. Can someone please tell us what happened to personal responsibility? The latest news from Washington is that some politicians are proposing that our hard-earned tax dollars be spent to bail out thousands upon...