Mortgage Buys?

There may be a market for some good stock buying in the mortgage and banking industry right now. Not only that, but with the Fed most likely cutting interest rates again, there may also be some good mortgage rates that are ripe for the picking coming up if you are in the market or are shortly going to be in the market to buy a home soon.

What do I mean when I say that mortgage and banking stocks may be a good buy right now, when the economy is in the toilet and many banks have publicly acknowledged that the subprime mortgage fiasco as well as issues with worsening recession fears and consumers fearing bad credit and lack of credit availability widening in attack, there may be some excellent opportunities to buy premium stocks at reduced prices. And that means they could go down further before they go back up, so keep that in mind too.

When you invest in anything, you should be sure to do your research on the solidness of the company’s financials, and base it on the fact that they have a solid marketing strategy, good liquidity and money on the books and many other things before pulling the trigger, even if the stock appears to be deeply discounted. I myself have forrayed in to investing in banks as of late, but it’s not without calculated risk, and as long as you calculate your risk, you may do well in the end when this mortgage crisis is over and forgotten .

Problem is, we don’t know exactly when that will be and many naysayers say it will still be a while, and we don’t even know the full impact of it at this point. As long as you can weather the storm, there could be potentially great gains in many of the bigger bank stocks that are supposed to be able to weather these types of financial times, like Well Fargo and Bank of America, who just made a major aquisition in it’s troubled competitor who was majorly hit by the subprime fiasco, Countrywide.

As far as mortgage deals go, whip out the mortgage calculator, and start calculating what type of mortgage interest rate you’d need to be able to purchase a home comfortably. Be careful to factor in all your other month to month expenses though. This is where many people make the biggest mistake, in that they forget to really factor in these other big what-if’s. I mean, are you still going to be able to afford an emergency fund, savings and retirement and so on and so forth?