Jane Campbell

The Federal Reserve's pledge to stop buying mortgages by the end of March is sparking fears among home builders, mortgage investors and even some Fed officials that mortgage rates could rise and knock the fragile housing recovery off course. Rates on 30-year fixed-rate mortgage have risen by a quarter of a percentage point in the past month to around 5.2%, according to HSH Associates, near their highest levels since September as the bond market has pushed up long-term interest rates amid signs of an improving economy.

The recent rise in mortgage rates could be a prelude to even bigger increases in coming months as the Fed steps away from support for the market. That prospect has some in the markets counting on the Fed to change course and keep buying past March, which many officials are reluctant to do.

If the interest rates goes up by 1% point, you will lose 10% of your buying power. In fact, you will pay the same monthly payment for a home purchased at $180,000 that you would currently pay for a home purchased at $200,000

There has never been a better time to buy. You only have until April 30th to capitalize on the First Time Homebuyer Tax Credit and The $6500 Tax Credit for current homeowners. And, you don't need to sell your home to get the $6500 credit! You can keep if for an investment and move up.

You can purchase a house for $270,000 with FHA loan and a down payment of only $9,500. The seller can help with buyer closings costs and you get a $6,500 or $8,000 tax credit.

No one can predict where the bottom is until it has made the turn to go up again but I guarantee you are in the safe zone. Don't delay - with home prices low, interest rates low, and a tax credit to boot, I just can't see a more "Perfect Storm!"

A "perfect storm" is an expression that describes an event where a rare combination of circumstances will combine to create an unusual phenomenon.

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In the wake of the recent market turmoil, I've been asked this question more than once. People with good credit can get loans. If they are getting a conventional loan, their down payment requirement is likely to be higher than it might have been tow years ago. A buyer with good credit and 10-20 percent down should not have any problems

Based on the appraisal and the buyer's credit score, it may be possible to put as little as 5 percent down on a conforming conventional loan.

FHA loans have seen a big resurgence, largely because it is possible to put as little as 3-3.5 percent down on a conforming conventional loan. The maximum FHA in our area is approximately $417,500.

Interest rates remain favorable and steady, held down by the weak economy. Some observers believe there is no way interest rates can remain low as the US Treasury has to offer a competitive rate to bring in buyers of US debt, which has passed $11 trillion dollars.

To be sure of your ability to get a loan, the best thing you can do is check with a reputable lender and work with a loan originator to determine is you qualify and what loan is best for you and your family. Check with your local lender, there any many in the Nashville area.

The Jane Campbell Team

615-596-0169

www.janecampbell.com

Traceside an estalisished neighborhood located on the west side of Nashville, considered Bellevue. There are 402 homes. The homes are 4 sides brick. The community has an Olympic sized pool, which is required by metro to have lifeguards present during all pool house. There is an active swim team which starts after the school year get out. The playground and sidewalks make it great to getting outdoors.

Schools nearby Traceside are Top Metro Elementary Harpeth Valley, St Matthews and St Henrys. There are shops and retail in close proxmity, the famous Loveless Cafe, Natchez Trace and Percy Warner Parks.