Guide to Housing Loans

Housing Loans is a guide to the best and cheapest house loans.

In preparation for getting a house loan, it is imperative to get your finances in order before even trying to get pre approved.  Even if you do get pre approved, if you your credit is sub par and your price range is unrealistic, the chances for you getting the house you want will be decreased.  Get your credit report in order and then use a house loan calculator to determine how much you can really afford.  By doing this, you will increase your chances for getting the amount you need for the house you want.  A house loan calculator can take the amount of the loan, factor in your finances and down payments to let you know how much, including interest, your monthly payments will come to.  This will better prepare you for expenses like home owners insurance and closing costs.

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Why is the US Headed Back into a Recession

According to the previous report of ECRI (Economic Cycle Research Institute), the US Economy is set for a recession towards the end of this year, the beginning of 2013. There are solid data reports including the declining jobs and personal economic growth, which indicates a recession in future. Lakshman Achuthan, ECRI chief operations officer, has discussed the odds of an upcoming recession over different programs. Most of the experts are in agreement with what Mr. Achuthan has concluded about the US economy. Another blow to the economic condition is the end of Bush tax cuts towards the end of the year. There are many other factors indicating a possible recession in upcoming months.

Gross Domestic Product (GDP) indicates the growth or lowering of the economy in any financial year. GDP consists of four important factors and all of these factors will be discussed in detail. This article will further discuss that why the US economy is headed towards recession and how these factors are responsible.

Consumer Spending: Consumer spending is one of the most important constituent of GDP. The last recession has limited the overall spending of American consumers and there are very rare chances of further increase in it. The rate of growth in number of jobs is declining and as per the current stats, it is insufficient to reinvigorate the spending appetites of consumers. There is only way to increase the overall consumer spending and that is to have an enormous growth in job openings which is highly unlikely. Reduced consumer spending is a big reason to worry and an alarm for average investors and citizens who will be facing an economic downturn in upcoming months.

Government Spending: There are many factors controlling the fiscal spending in any year and so is the case in 2012. The government has not taken any decision or action over the pending tax hikes and cuts in spending which is a clear indicator of a dreaded fiscal cliff. However, there is a lot of uncertainty over this factor because of the upcoming elections towards the end of the year. The main point is that there will be an overall reduction in government spending which may lead to a possible recession.

Business Spending: Business spending forms a smaller portion of the GDP as compared to all other factors. According to the latest data, there has been some growth in business spending but the rate of growth has declined. In addition, the major issue is that in an environment where consumers are not ready to spend much and the government is facing a fiscal cliff, how these businesses will respond. According to the experts, most of the businesses would prefer wait and watch approach rather than investing in a new sector or field, which means there will be very little support from business spending.

Net Exports: The global downturn in economies, especially the financial in crisis in most of the European countries and slow growth in Asia will have a severe effect over the international exports business and there will be an overall reduction in net exports value.

All of these factors indicate that the overall GDP will fall leading to a possible recession during the summer. The only hope during this economic condition includes the upcoming monetary policies of the government. The US Federal Reserve has to come up with crucial strategies and policies to overcome this situation. In the meantime, it is advised to be prepared for a rough financial year ahead.