It appears some good news is coming our way! I was told by a loan officer today that his bank has a 5.7% 30 year fixed rate loan and a 5.3% on a 15 year loan. Rates are dropping!
Those of you who have not bought a home, have thought about buying a home or have a low rate that you do not want to give up, and those who have been thinking of investing in real estate may be seeing the opportunity to take advantage of the Buyer’s Market that covers most of the nation. It may be the right time to cash in on real estate. Those of you that have had credit problems still have options for loans, so do not sit back and miss the oppotunity. It appears my prediction may have been right when I said that rates would fall as the election year started. Some have speculated that we are in a recession or possibly a depression. The way I see it is that most areas in our country are seeing an adjustment in real estate appreciation and inflated prices. In reality this had to occur. Real Estate can not continue to appreciate at a unrealistic value. What is unrealistic, you ask? Well in my local market the average appreciation is somewhere around 2.5 to 3% on average over the past 22 years that I have been in the business. Some areas had a real estate market that was appreciating at a rate that was double or better than what their normal appreciation was. This will not work over the long haul. If everytime you went to buy milk at the grocery it was 10 cents higher than the time before, how long would it take you before you stopped buying milk. It is that simple.
At some point we will not pay, no matter how bad we want or need something. On top of the real estate market they have driven gas prices up to the point that some peoples household gas expense have gone up 50% a month in the past year and that has affected the amount of housing they can afford. It is real folks. At some point the American people stop buying even what most of us see as the essentials or at least cut way back. This is not the first time history has repeated itself and it will not be the last. Stay focused on your goals and if buying a home is what you want to do…….it looks to me like it is going to be a great time to do just that!
Did You Know?
The smaller the better!
The higher the interest rate, the more expensive it’s going to be. High interest rates mean you will have to pay back more on the money you borrow. Another good rule of thumb is that affordability increases if you use an adjustable rate mortgage (it’s easier to qualify this way). Choosing between fixed rates and adjustable loans can be very confusing. Typically, right now most people are choosing fixed rates because they are low and the fear of the unknown of the future economy. Fixed rates have a higher upfront cost. Of course, you will pay….you will pay upfront for the fixed rate or over the term of the loan on an adjustable rate loan There will be a various prices that you can choose from, depending on what kind of financing you decide is right for you. Try this for more mortgage loan tips.
The Federal Government holds a considerable amount of power, but they cannot control everything. Mortgage interest rates are affected by many unpredictable political, economic and social factors. So there is no guarantee what
direction interest rates will go, despite the forecasts of the experts. So, make your decision based on where you are at the present time, looking at everthing: your budget, your needs and your future plans.
Locking in rates assures your lowest interest. If you do decide you want to lock in at a certain interest rate, you will need to complete a loan application with your mortgage company. This must be done so that your commitment does not run out before your loan is approved. Follow up and be se sure that the lender is receiving all of the necessary documentation. Your property will need to be appraised as part of your loan. The quicker all of these things get done the faster you get in your home and insure your rate.
Don’t get caught up in all that there is to read and listen to about what rates are “going” to do. You could miss your dream home waiting for rates to fall. Besides rates can go up just as fast as they came down.
Visit again soon! I have more information that I hope will help you!
