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Looking for a personal mortgage loan? With the super low mortgage rates and the declining real estate market, you would think that buying a house will be great right now. But wait? now with bad credit, high unemployment, a threat of a second recessionary dip. and an anemic recovery, experts are doubting that the bottom has not fallen yet.

So on top of this there are areas in that are doing much worst for real estate. It all follows the type of economy that the city is dependent on. For example Reno’s dependence on gambling and tourism has seen home prices dropped as much as 50% from its 2006 level, other markets include Vegas, napels, fla, with the expectation that prices can fall even further. (Remember that just a couple of years ago Vegas was promoted as the new retirement spot with great weather, and close gambling and amenities), and Florida’s prices were just booming with excessive speculation.

CNN just reported on how to “crack the code for a perfect credit score” As I mentioned on previous articles, there are lenders looking to lend to bad credit borrowers, but the terms may not be the best. So why not try to fix your credit, manage your debts (instead of declaring bankruptcy and being in years of credit and possibly job limbo).

To summarize the article, Fico the company that produces the Fico Scoring model explains that there are 5 factors that determine your credit score number, which could be the key to great personal loan rates, rather than struggle with bad credit. So here they are: Payment history, the amount you own in your credit lines, length of credit history, how much credit have you applied, and types of accounts.

The article emphasizes payment history as the most important ruler on how your credit score is determined. So there you go.

I recently read a CNN article about the New normals that we will need to get used to with the expectation of a new dip in the economy. Not to mentioned that credit is really tough to obtain, even with good credit. So as the economy growth slows with bad reports in real estate, unemployment, low credit approval , and slowing down on personal and commercial lending, including bad credit loans. We may need to get used to paying things with cash. What?

Well, here are the new normals of the economy: Long term unemployment, with “finding a job” being the daytime occupation. The article further indicates, that with employment close to 10% and little or no hiring from the private sector, this could be the new normal. Another aspects are Renting vs Owning, as experts claim that real estate is no longer the great investment that they a few years ago claim to be, and more expected declines on property prices, people may expect to rent rather than buy a house. More Savings as people opt to save money due to the uncertainty of the economy, and Higher taxes for the rich.

Blaming your credit score for high loan rates and credit card fees. Thinking your score is the key to your financial success or the omen of your financial ruin. Well, you may be partially right. According to recent reports, there is a real misunderstanding on how lending works.

For example if you get a credit card with a low teaser rate for balance transfers (yeah, we see fewer of these offers nowadays), if you transfer the balance of your higher rate credit cards to new one you will notice that new purchases on the new card still at a higher rate. Credit Card borrowers keep making purchases on the new card assuming that the rate is still the same low interest rate for the balance transfer.

Personal Loans, bad credit or not affect your life, not only because they prevent you to save, but also because it ties you up to a payment plan that does not allow you to grow financially. For most people, it starts with the infamous student loan. Student’s work really hard to get to the school of their choice, but after years of study, and debt, they enter a lackluster job market. Which further ads to debt, and long term payment plans.

Rite of passage like getting your own appartment, getting a job and growing in your career are affected. Students are now opting to moving with their parents, going to state schools, negotiating rates with loan companies and looking for ways to save in college education.

Lately, news have reported on Private Schools aggressively pushing programs to educate the unemployed workforce with the lure of helping them gain practical skill-sets that are in demand in the market (I mean, I am not sure what is the actual demand for office medical assistants, but there is a lot of television advertising for it).

As the market grows fueled by easy credit offered by the student loan companies, students may be incentivated to gain skills that may not be in demand in the market, ending with more debt at the end of their studies and no job prospects.

As the economic recovery looks rockier than initially expected, people are bracing for more bad data from the US unemployment report. Economist and financial analyst are hoping for positive news, but expect more negative reports along with housing and consumer spending.

On positive news, the fed chief expected 2011 to be more positive in terms of job growth and GDP (although revised downward). On personal credit, finance companies are lending less to good or bad credit borrowers as they are expecting more bad news from the financial markets.

The Latest reports speak to a weaker economic outlook for the rest of the year. New figures were released on Friday showing how the economy struggled, growing at a low rate of 1.6%.

Note that the estimate was 2.4%, and even that was not an impressive outlook. As the economy deteriorates further, the fed is looking to stake steps to prevent a second recession.

Economists are expecting the unemployment rate to increase to 9.5%, and they expect the unemployment rate to increase. The federal reserve is looking at several options including buying more government debt or mortgage investments, in order to keep interest rates down to increase business activity.

Even with disappointing economic news, we hope that with the low lending rates banks will find opportunities in lending to the sub prime sector.

According to the Atlantic magazine 15 million amreican households receive more cash to the IRS than they contribute to federal income and employment taxes. How is this possible? Low-Income American households may benefit for targeted welfare programs.

Washington has passed laws such as child tax credit, earned income tax credits. Another free riders include: making work pay tax credit, increased in earned income tax credit, american opportunity credit, homeowner, temporary suspension on unemployment taxation, alternative minimum tax patch.

Interestingly enough, the free riders favor low income americans who don’t contribute to the tax system, as well as the “under-paying” rich whose incomes have falter during the 2000s. Actually, by patching the alternative minimum tax, the tax cuts went to families making between 100k to 500k. umm….

The Fed is considering making more purchases of securities if the economy deteriorates further as the economic chief describes the recovery “less vigorous than expected”. Although he mentioned that the economy is expected to pick up for the next year, downplaying the odds of another recession, he cautioned that the economy is still vulnerable to unexpected events.

Nevertheless, the slowdown in consumer demand, and the terrible housing and manufacturing reports, may indicate another slow down of the economy.

But not all is bad news, with ultra low rates from the Fed, lending has been increasingly attractive to borrowers who may qualify for a loan to start new ventures. Hopefully bank executives, will see this as an opportunity to resume lending to the small business sector, as well as to take more risks on people without excellent credit.