One Thing Guaranteed is CHANGE!

Life is always changing. Our industry is forever changing. Usually the changes
are for the best. In looking back when we purchased our first home in 1970 we
applied for a VA loan. Believe it or not the spouse’s income (my secretarial
salary) was not used to qualify. I was told I might get pregnant, lose my job and
have no income. CAN YOU BELIEVE THIS? Yes it is true. We qualified on my
husband’s $650/mo salary. When we applied the interest rate was 8%. From the
day of application to the date of closing, the rate dropped one full percent and we
got 7% interest for 30 years. We were thrilled! By the way, I proved them wrong. I
did get pregnant. I took off from work 4 weeks and went right back to work. LOL
In the 70’s financing was so easy. In fact, many did not need to apply at all. All
that was needed to assume an existing loan, was to pay $50-$100 transfer fee
and the original mortgage was “transferred” to the new buyer. Today's typical
closing cost was not applicable. Cost to the buyer was minimal. A real deal for
buyers. WOW! We didn’t know how good we had it!
Moving on to the 80’s we experienced interest rates of 18%+. This is when we
began with our “Creative Financing”. We did “stock pledges”, “buy downs”,
“ARM’s”, “owner financing”, “bond for deeds”, “wrap-around mortgages” and
anything else we could imagine. We helped families buy homes without paying
the exorbitant high interest rates. This proved to be most beneficial for our
clients.
Then, in the mid 80’s, remember all the foreclosures? After lenders allowed
simple assumptions with no credit approval, look what happened. Many were
truly not financially capable of paying their mortgage. To make matters worse,
we then experienced the oil bust. RTC (Resolution Trust Corp) came to town
and we worked and found families needing housing to move all their foreclosures
from the market. Once again, we succeeded.
In the 90’s we continued with a boom, appreciation of home values and easy
methods of financing for home mortgages. In fact, it was way too easy to anyone
to get a loan. Look what happened. Once again people were given mortgages
who truly could not afford the mortgage payments. Predatory lending practices
made the situation much worse.
2005 brought Katrina and another boom hit Baton Rouge. Here we are, 2008 and
living in what is considered to be one of the best cities to live to weather the
downturn in the national economy. Nationally we are faced with many
challenges. But here in Baton Rouge we have succeed many past challenges.
Today interest rates to purchase homes are 4.375% for 30 yr fixed. AWESOME!
The real reason people move is because of lifestyle changes. People who wish
to upsize or downsize have a window of opportunity staring them in the face. I
believe those people will take advantage of this opportunity. Those who chose
not to do so will be kicking themselves next year as change is sure to continue!
Enjoy your holidays. May you and your family have a Merry Christmas and
Prosperous 2009!