Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers. Then, everyone who sat on their down payment savings accounts for a few years too long will kick themselves for not taking advantage of what may turn out to be the buying opportunity of a lifetime for those who can qualify for a mortgage. Unfortunately, we do not know when this golden age will begin, because we will be able to identify a bottom to the housing market only with the benefit of hindsight. But as it does with the stock market, the moment will probably arrive when everyone is feeling the most pessimistic. That moment is certainly getting closer. Housing prices have fallen drastically from their peak levels in many areas of the country. Rates on 30-year fixed-rate loans are already close to 5.5 percent, and this week there were suggestions that the federal government might try to drive them down to 4.5 percent, a truly incredible figure to be able to lock in for three decades. Meanwhile, first-time home buyers have the same advantage they have always had, which is that they do not have to sell their old place before buying a new one. That is an added advantage in areas where many available houses simply are not moving, because the people trying to sell them will not be bidding against you.
Source: Your Money
Read the rest here and How To Get Your Next Investment Mortgage at or below 6%! :
...from The Desk of Ed Bisquera Mortgage Express
The 4.5% Solution
Nothing gets the markets more excited than the government talking about lowering rates to record levels. Ever since the Treasury floated a plan that would have the government buying loans at 4.5%, it has caused a stir that we have not seen for some time in the real estate markets. Many questions remain. For example, who would be eligible for these loans? Preliminary information would indicate that these loans would be for purchases only. The government could also restrict these loans to those with good credit, first-time buyers and/or low-to-moderate income buyers.
The most important question is, what would this plan do for interest rates on other loans? We already have that answer. Rates are going lower and have hit a level seen only a few times in the past several decades. Why? The government backing loans on real estate gives the markets confidence. So, in essence, the markets are already reacting to the possibility and the general public can already take advantage of these great rates. Keep in mind that it is not a certainty that the proposal will even come to fruition. But who cares about that when we have rates that are prompting many to act right now?
Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers. Then, everyone who sat on their down payment savings accounts for a few years too long will kick themselves for not taking advantage of what may turn out to be the buying opportunity of a lifetime for those who can qualify for a mortgage. Unfortunately, we do not know when this golden age will begin, because we will be able to identify a bottom to the housing market only with the benefit of hindsight. But as it does with the stock market, the moment will probably arrive when everyone is feeling the most pessimistic. That moment is certainly getting closer. Housing prices have fallen drastically from their peak levels in many areas of the country. Rates on 30-year fixed-rate loans are already close to 5.5 percent, and this week there were suggestions that the federal government might try to drive them down to 4.5 percent, a truly incredible figure to be able to lock in for three decades. Meanwhile, first-time home buyers have the same advantage they have always had, which is that they do not have to sell their old place before buying a new one. That is an added advantage in areas where many available houses simply are not moving, because the people trying to sell them will not be bidding against you.
Source: Your Money
Read the rest here and How To Get Your Next Investment Mortgage at or below 6%! :
Hi all, just wanted to wish you and yours Happy Holidays and share with you these words of inspiration during this season. May you all have a great holiday season and a blessed new year.
Thank you again for all your well wishes, comments, words of wisdom, advice and friendship. I've learned a lot from many other of you blogging here on Activerain, this short time I've been here and I look forward to getting to know many more of you "virtually" over the coming months, as we survive through this Real Estate market.
Sincerely,
Rates for refinancing and purchase mark this a perfect storm to take action
(Portland, OR & Vancouver, WA)
Another record week, with rates for FHA, VA & 30/20/15 YR Conventional sitting in the low 5's. At one search today for a client, at 4.75% (4.9% APR) for 15 YR Fixed!
For FHA, VA, Conventional and even Investment properties, it's a beautiful time to look at getting a loan scenario quote and a full report on savings, by getting a mortgage savings report, including time to recoup closing costs of refinancing loan and comparison to what you have now.
Mortgage Consultant and Mortgage Acceleration Specialist. Helps First Time Home Buyers and Real Estate Investors realize their dreams. Teaches How to pay off mortgage in 1/2 to 1/3 time.
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