According to the Department of Veterans Affairs Fiscal Year 2010 Performance and Accountability Report, the VA guaranteed approximately 314,000 loans to veterans. 192,600 were loans for the purchase of a home and 121,400 were for the reduction of interest rates on a home known as a VA interest rate reduction.
Billionaire investor and philanthropist Warren Buffett recently expressed strong support for America's real estate market. "Homeownership makes sense for most Americans," he wrote, "particularly at today's lower prices and bargain interest rates." Buffett pens a yearly letter to shareholders as CEO of Berkshire Hathaway Inc. His most-recent letter states that, in Buffett's experience, purchasing wedding rings is the only investment that's better than buying a house.
"My family and I gained 52 years of terrific memories with more to come" living in their five-bedroom stucco home in Omaha, NE, Buffett explains. Homeownership allows us to build an enjoyable life – while our owner equity also grows over time. Fortunately, we don't have to be billionaires to obtain those advantages. Contact us soon to find out why today's real estate marketplace can help increase your satisfaction in life.
Home sales are rising, while prices are still edging downward, according to recent economic reports. Sales have gone up in five out of the last six months, states the National Association of Realtors (NAR). "The sales recovery appears to be a sustained gain," adds NAR Chief Economist Lawrence Yun. Why aren't average prices going up yet? One reason is that some sellers are eager to find buyers now, and offering great deals.
Another factor is that reporting average prices obscures what's happening in different communities. Areas that are stable or improving are overshadowed by neighborhoods under stress. A sounder perspective comes from real estate experts at Moody's Analytics. Comparing home prices to average U.S. incomes today shows "the cost of a house is the equivalent of about 19 months of total pay for an average family," reports The Wall Street Journal.
Homes haven't been this affordable in 35 years, the Journal adds. Typically properties cost about two year's pay. Renters in some communities find they actually can save on their housing costs by purchasing now, states the Journal.
Adjustable-rate loans are making a comeback, since they provide borrowers with lower monthly payments. Yet it's crucial for consumers to understand how these tools will work in their situation. Fixed-rate home loans provide peace of mind, since owners know their monthly payments will never change. Yet lenders must charge a higher rate to make up for the risks of lending money for three decades.
However, most owners don't need to pay extra to obtain funds for 30 years. It's more likely they'll move or refinance before that time is up. Adjustable mortgages offer a lower, fixed rate for a set period. You'll have guaranteed low payments during that interval, and then your rate can change to reflect market conditions.
Recently borrowers could obtain an adjustable-rate loan with payments which wouldn't change for five years at more than one percentage point below the rate on a 30-year mortgage. Savings of $135 per month on a $200,000 mortgage were gained with this loan. Get in touch with us soon to discover how an adjustable mortgage can make a home purchase easier for you. We'll review your borrowing options, so you can select a loan which meets your long-term needs.
Some current owners would benefit by refinancing into an adjustable-rate home loan now. If you plan to move within five years, you could save on your monthly payments until then. An adjustable mortgage also would be a good fit if your income will be higher five years from today. Perhaps one spouse currently is in school, but will be working at that point. You may be able to save more than $1,000 annually by moving to an adjustable loan. We'll answer all your borrowing questions as we go over your current situation and review your plans. You'll then be able to make a smart long-term decision that will enhance your lifestyle – and your finances.
Rising food and energy prices are a warning that inflation may go up, many commentators believe. Expectations of increasing consumer costs then could cause interest rates to rise, reports The Washington Post. And higher rates would lead to larger mortgage payments for future homeowners. Consumers soon will find fees added to the cost of getting a loan, as well. "The mortgage market is facing pressures from new laws and regulations," reports The Wall Street Journal. Government-sponsored Fannie Mae, Freddie Mac, and FHA all are increasing their fees for some borrowers, the Journal adds.
You may find it in your interest to move ahead with an essential home purchase sooner rather than later. A possibility of rising rates and higher fees could add to your costs in the future. Although that sounds discouraging, it's important to note that mortgage rates remain near half-century low points. Rising inflation also can be expected to increase home values over time. Homeowners will gain as a result.
Of course, having a great place to live is the main reason to purchase a house. You'll appreciate the lifestyle freedom and security your home provides. Our job is to help arrange the financial details so you can get the most enjoyment out of your residence. We'll explain the process, and review your credit report to look for ways we can improve your score and lower your borrowing rate. Let us know what you want to accomplish, and we'll offer you positive solutions now. You can reach your homeownership goals as we work together.
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