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Recent mortgage rates remained below where they were twelve months ago. However, the Federal Reserve has discontinued its monthly practice of buying bonds to keep interest rates low.

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NMLS #1907 | Equal Housing Lender | VA Approved Lender; Not a government agency
Not available in AZ, IL, MN, NV, or NY

VA Mortgage News for Veterans

November 2014

Bruce Reichstein is an Expert on (VA) Military/Veteran Home Loan Guidelines for over 26 years — www.VALoans.com. He is an experienced VA Loan Mortgage Banker who is passionate about assisting US Military Veterans utilize their Veteran Eligibility to purchase a home.

Best Year-End Wishes!

May your steps be light as you go about your activities this season. Taking time to pause and remember our blessings is an important year-end tradition for many. Our best memories of this time of year remain magical. We hope you'll enjoy peaceful moments with friends and family as 2014 draws to a close. We're ready to assist you if purchasing or refinancing a home is a goal for you in 2015. Let our experience be your professional guide as you maximize the benefits of homeownership.

Watching Mortgage Rates

Recent mortgage rates remained below where they were twelve months ago. However, the Federal Reserve has discontinued its monthly practice of buying bonds to keep interest rates low. Fed demand for these securities has reduced the yield bonds need to pay investors. Rates for borrowers have stayed near record lows as a result. But an improving U.S. economy is causing the Fed to begin retracing its steps to boost growth.

Economic expansion is becoming hearty enough to support long-term benefits without assistance from the Federal Reserve. Healthy growth is encouraging companies to hire and consumers to spend. Output in the second and third quarters of 2014 produced the “best six months in over a decade” for the U.S. economy, according to Bloomberg News. Analysts expect year-end holiday spending to be up this December, since consumer confidence measures just hit their highest level in seven years.

Next year's outlook is even better. What's important, commentators say, is that the economy is moving in the right direction. Jobs and wages are growing. Companies and households are ready to spend in order to give themselves a brighter future. For companies that means investing in buildings and equipment which will let them grow and produce more efficiently. Consumers are finding increased take-home pay and attractive borrowing rates make it easier to purchase a home that will improve their daily life.

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Owning Pays Off

House prices have gone up across the country since 2012. Yet they still represent bargains, since the alternative of renting is less attractive. Home values remain 13 percent below their 2007 levels, according to Bloomberg News. However, average rental rates have risen 16 percent since that time. Real estate's long-term value becomes apparent as years pass. Opportunities to build wealth and create a stable household for daily living are realistic reasons for deciding to buy your own residence.

Owners typically find they're not just purchasing a home; they're becoming part of a neighborhood. Homeownership is a part of someone's identity. We appreciate being in charge of our own living space, while striving to produce a better future for everyone in our family. Some people remain lifelong renters. Often these folks say they don't want the responsibility of maintaining a house, or they desire the freedom to move quickly. Other renters aren't sure they can obtain home financing, or can afford monthly payments. Yet seeing how rents are moving up also encourages renters to look into buying.

Back to Basics

At times it's easy to focus on the latest headlines and ignore the underlying reasons real estate is important to most Americans. Homeowners gain simply by having a special place they've selected to live in. You can redecorate your home or alter your landscaping whenever you choose. On the financial side, you can obtain financing that guarantees your monthly payments won't change in the future. We're used to seeing the price of many basic items going up over time. Having set housing costs gives you more financial security than renters can achieve. You also can expect your home's value to rise over time. Paying off your mortgage increases your future sale profits, as well.

Today's Optimistic Buyers

Attitudes towards homeownership are turning positive, relates a recent survey from mortgage investment firm Fannie Mae. More than two-thirds of American consumers “say now is a good time to buy a home,” the researchers report. Residential values also are expected to go up 2.2 percent over the next year. However, rents will rise 3.2 percent over that period, predict the surveyed adults. All this spells opportunity for persons who are looking to buy property soon. Earlier this fall sales reached their high point for this year, reports the National Association of Realtors (NAR).

Help is Coming

Buying a house is a long-term commitment that generally turns out well for owners. Yet it's been challenging in recent years for many Americans to make the purchase they're thinking about. A big reason is that federal guidelines enacted after the housing crisis make it more difficult for lenders to grant mortgages. Many commentators believe these restrictions are keeping families who deserve to purchase from realizing their housing goals.

Fortunately, it appears that message is getting through to government regulators. Steps are being taken to allow more households to obtain a home loan on good terms. Plans call for reducing down payment requirements, and providing better terms for borrowers whose credit isn't perfect. If you looked into buying in the past and became discouraged, now may be a good time to review your situation.

We'll answer your real estate financing questions, and review the options that can let you buy the home you want. Even if you're not quite ready to purchase immediately, we'll help you establish a checklist of goals that will put you on the path to owning. Get in touch with us soon if you envision yourself owning a home in the future.