Happy New Mortgage

As the year comes to an end, we often reflect back on the year that has passed. We also feel compelled to make some resolutions on what we will/will not do in the coming year. This past year has been an interesting one in the Real Estate Business to say the least, and I anticipate that '07 will be even wilder. I for one am very excited for it...

Some Highlights: New Fed Chairman, Housing market has cooled, Democrats took over Congress, Economy has faired pretty well, no hurricanes hit the mainland...Things are looking good.

Here are my top 5 reasons to take out a new mortgage in the coming year:

1) Rates are still very low. They have not gone up drastically (as had been anticipated) so money is still very cheap to borrow! Make the move now to get out of your ARM loan or high rate fixed loan.
2) The housing market has slowed, putting buyers in the driver's seat. Low rates to borrow money cheaply + lower purchase prices= time to buy!
3) The foreclosure market is booming. While foreclosures are definitely a very negative thing for the victim, and should be avoided at all costs they do present an opportunity for investors. Now is a great time to capitalize on this type of investment.
4) Second mortgages make a lot of sense when rates are low. A junior loan even at 12% is better than borrowing on a credit card at 20%.
5) You need to get rid of those HELOC's ( Home Equity Line of Credit). When Prime was at 4% these were attractive, but now that it is at 8.25% it isn't so strong. As Prime goes up so does your payment. These are risky, so it makes a lot of sense to refinance out of these loans and into one new fixed rate loan.
Just some thoughts....

Happy New Year!