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Paul Bowen

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Interest Rates are Going Up

02-23-10
Paul Bowen

The rise of interest rates for the historic lows we are now experiencing is inevitable. It appears that it will be sooner than later too. At the end of March the Fed is scheduled to quit purchasing mortgage bonds. Right now they are purchasing about 4/5's of the bonds on the market. the fed has been most generous in keeping these rates low. When the market begins to depend on the private investors to purchase these bonds theywill of necessity be at a higher rate because the private investors will not be a tolerant of the risk involved like the Fed has. Most experts are predicting that interest rates on home loans will go up by 50 basis points (.5%) within the first week after the Fed quits buying the bonds. They also see interest rates going up by more than 1% by the end of 2010. What this will do to home sales is uncertain because buyers are more attuned to home prices that they are interest rates. That being said; higher interest rates will at the very least limit the size/price of the home that a consumer will be able to qualify for.

If buyers are seting on the fence waiting for interest rates to go down, now is the time to help them off. They could miss a great opportunity to purchase the home of their dreams.

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50% of Home Owners don't know about loan modifacation

10-23-09
Paul Bowen

A recient survey but the Notional Associan of Realtors found that over 50% of home owners, who are late on their house payments, don't know that they can have their loans modified so that theny can better afford their house payments. There is help available! There are actually a lot of options out there and many of the homes that go into foreclosure don't really need to do so. There are several web site a person con go to to find help. Consider looking at these:

www.makinghomeaffordable.com www.hopenow.com www.hud.gov

All of these can give you direction into how to get help. Why let a home go into foreclosure when you don't need to? Loans can be modified in several ways. Interest rates may be lowered.Back payments may be re-calcuated and put onto the end of the loanso that new payments are on time. Adjustable rate mortgages may be modified into fixed rate loans. In some cases, even some of the debt may be forgiven and a new loan issued with lower more affordable payments. Every persons circumstances are different and loans can be customized to fit the need.

Again, many of the homes that are foreclosed on don't need to be. If your home is in dristress mode; try these other options first.

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