Friday, December 29, 2006
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!
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!
Monday, December 11, 2006
Mortgage rates... Where are they?
I find that a lot of consumers have a very inaccurate picture of where rates are, so I felt compelled to say something on the topic. Last week ( December 7th) rates were actually the lowest they have been in 2006. They have clearly steadied out, and all economic indicators point to them staying at their current levels as we enter into 2007. click here
It appears that the gents at The Federal Reserve are pretty dialed in to where the economy is headed and that their decision to maintain current interest rates, without an increase during their past two sessions has paid off. The economy has slowed enough for them to feel truly confident that inflation pressures are abating, but not so much that a recession is looming. This is a great middle ground for us all.
When the 'Fed' gets together on December 12th, I anticipate rates staying right where they are. There really doesn't appear to be a need to move them in either direction for the time being. Of course wiser men than me sit on the board, so we shall see.
Regardless, mortgage rates should stay at these attractive levels for the short term, making now an ideal time to refinance into a fixed rate mortgage. Experts anticipate more than $400 billion in ARM mortgages entering their adjustable periods over the next 12 months. With rates this low, smart consumers are cashing in now. If you have an ARM, it might be time to act!
It appears that the gents at The Federal Reserve are pretty dialed in to where the economy is headed and that their decision to maintain current interest rates, without an increase during their past two sessions has paid off. The economy has slowed enough for them to feel truly confident that inflation pressures are abating, but not so much that a recession is looming. This is a great middle ground for us all.
When the 'Fed' gets together on December 12th, I anticipate rates staying right where they are. There really doesn't appear to be a need to move them in either direction for the time being. Of course wiser men than me sit on the board, so we shall see.
Regardless, mortgage rates should stay at these attractive levels for the short term, making now an ideal time to refinance into a fixed rate mortgage. Experts anticipate more than $400 billion in ARM mortgages entering their adjustable periods over the next 12 months. With rates this low, smart consumers are cashing in now. If you have an ARM, it might be time to act!
Sunday, December 03, 2006
My credit is poor...Can I still get a mortgage?
Truth is, that there are loan programs for all credit types. The most important thing is to really get a good handle on just how bad your credit is. Most people are shocked I find, when I go through their credit with them. They can't understand how their score is not higher than what it actually is.
You must make on time payments, and you should always try to maintain a pretty good understanding of where your credit stands. You can access your report on sites such as click here but I would also recommend reviewing your accounts with an expert. A mortgage Banker/Broker that you trust is well suited to help you with this.
The most important type of debt to pay on time is your monthly housing obligation, usually your mortgage(s). It is obviously very important to pay all of your bills on time of course, but there are many other factors that impact your score.
>Total amount owed (outstanding balances)
>Length of credit history (how long have you maintained healthy credit lines?)
>New Credit and your complete credit mix/breakdown (New large purchases such as a home, a car or even an expensive TV can cause your score to drop when added to you credit portfolio)
The reason these all impact your rating is that your credit score is a mathematic calculation on your likelihood to pay back money loaned to you. Your score is a snapshot of your total credit risk at a particular point in time. A large new obligation added into the mix poses a risk to all of your other creditors. The concern is not how you performed in the past, but how will you maintain with this new financial burden you have just taken on?
Before you assume where your credit ranks, I implore you to speak with an expert and have them really explain it to you. You might be surprised what you find out...
You must make on time payments, and you should always try to maintain a pretty good understanding of where your credit stands. You can access your report on sites such as click here but I would also recommend reviewing your accounts with an expert. A mortgage Banker/Broker that you trust is well suited to help you with this.
The most important type of debt to pay on time is your monthly housing obligation, usually your mortgage(s). It is obviously very important to pay all of your bills on time of course, but there are many other factors that impact your score.
>Total amount owed (outstanding balances)
>Length of credit history (how long have you maintained healthy credit lines?)
>New Credit and your complete credit mix/breakdown (New large purchases such as a home, a car or even an expensive TV can cause your score to drop when added to you credit portfolio)
The reason these all impact your rating is that your credit score is a mathematic calculation on your likelihood to pay back money loaned to you. Your score is a snapshot of your total credit risk at a particular point in time. A large new obligation added into the mix poses a risk to all of your other creditors. The concern is not how you performed in the past, but how will you maintain with this new financial burden you have just taken on?
Before you assume where your credit ranks, I implore you to speak with an expert and have them really explain it to you. You might be surprised what you find out...
