Rates on 30-year home loans dropped in April to their lowest point ever recorded, states mortgage investment firm Freddie Mac. It has been tracking rates since 1971. Over the last year home loan rates have dropped more than one percent, Freddie adds. That means a borrower with a $250,000 mortgage could save $171 each month.
Recent fixed rates were lower than the rate on many adjustable mortgages, Freddie reports. That allows more buyers to gain peace of mind and take advantage of the security of stable monthly payments. "Potential homebuyers are taking notice of these historically low mortgage rates," says Freddie. Home sales began picking up in February, and first-time buyers accounted for half of those transactions.
"Sales of existing homes jumped five percent in February compared with the same month last year," explains syndicated columnist Kenneth Harney. Buyers also are taking advantage of the $8,000 tax credit now available to purchasers who haven't owned their residence over the last three years. However, that tax break is scheduled to disappear at the end of November. Contact us soon to take advantage of today's excellent home buying conditions!
Increased affordability makes it easier for families to purchase a house. Falling mortgage rates and lower prices recently pushed affordability to the highest level recorded since the National Association of Realtors (NAR) began tracking its Affordability Index in 1970. Rates at the end of the first quarter of this year reached "their lowest point in roughly 50 years," adds Lawrence Yun, NAR's chief economist. Higher demand for homes should strengthen real estate values, and limit further price drops. A recent government report reveals that prices rose from December to January. The most-recent data available from the Federal Housing Finance Agency showed the strongest price performance in several years during that time.
Many Americans find today's economic conditions are the most challenging they've ever experienced. While that's true, it's also stretching the point to say we're heading for another Great Depression. During that period thousands of banks failed, and many families lost their savings. Unemployment rose to one in four workers - or about three times current levels.
Our nation's production shrank by 30 percent in the Depression, whereas this year it's expected to drop two or three percent. So while it's true times are difficult now, it's important to maintain a proper perspective. We're in a deep recession, but many experts believe we'll be emerging out of it by year-end. Although matters probably aren't as dire as some forecast, we also can't expect our economy to rebound strongly in the near future. It's undoubtedly healthy for us to manage our finances more conservatively today. Many Americans now grasp that having money saved up can make us feel better than spending it does. Most purchases won't improve our lives.
However, buying a home gives us the opportunity to upgrade our living conditions. Our own house provides a place where we can feel secure, and make plans for the future while getting the most out of the present. We're ready to help you make a smart move which will pay off for years. Today's attractive home prices and low rates let you move ahead with confidence. Talk with us when you - or someone you know - would benefit from purchasing a special place to live in. We'll review your options, and then pursue a path to your goals.
Refinancing into a lower rate is an attractive prospect for many homeowners now. But you'll find the mortgage marketplace has changed since you last took out a loan. For that reason it's essential to work with an experienced professional you can trust to provide access to excellent financing. We'll begin by reviewing your needs, and determining how refinancing can help you now. Saving up to hundreds of dollars each month can give your budget a big boost. You also can move from an adjustable-rate loan to the security of fixed payments.
We'll answer all your questions, and explain how the process will work. We'll also go over your credit report to spot any errors. At the same time, we'll look for ways to boost your results so you can gain a lower rate. If refinancing isn't in your best interest now we'll come up with a plan for doing so in the future. But many homeowners will find they can cut their payments with a new mortgage. Today's historically low rates won't be available indefinitely. Speak with us soon to find out more about how you can take advantage of current financing opportunities.
Concerns and disagreements over money issues can cause strains in our personal relationships, says The Wall Street Journal. An important step for any couple to take before making big financial commitments is to reach an understanding about their finances. Married couples should discuss "how you employ debt in your life together, the rules by which you each use debt separately, and your plan to pay it off," adds the Journal.
Start by setting up limits on everyday spending. Also decide when you'll use credit cards and how you'll pay them off. Honoring these rules will keep you from having unhappy surprises when looking at your card statements. Knowing your partner won't exceed your budget on a shopping spree helps a couple remain happy and close. Choose a level of emergency savings to hold in reserve, as well. Agree on how these funds could be used in the future. Otherwise one spouse might get upset if their partner took money out for spending.
A good rule of thumb is that you should take on debt only if what you're purchasing will remain valuable to you once that debt is paid off. Increasing your credit card balance to buy dinner out means you'll be making interest payments on a purchase which most likely isn't crucial.
But borrowing to purchase a home or attain an education can be smart uses of debt. As long as your payments are affordable, you'll be benefiting from those purchases long after they're paid off. Talking about financial issues before they become emotional ones can help you devise a workable strategy. Learning to compromise is helpful if a couple finds their financial views aren't similar. We'll answer all your questions about mortgage debt. Together we can review how various loan programs would fit into your finances, and enable you to buy a home.