Short sales, Interest rates & Tax credits

Back again.

Want to own a home (or a different home)?

A word or two of advice...

If you're going to act, act now.

If you feel bullish about your future and you qualify under today's loan underwriting guidelines, there is likely never to be a better time for you to move into the real estate market. Interest rates around 5%, prices are flat and the federal government wants to give you $6500 to $8500.

Do the math:

Every percent of interest rate represents over $60/month per $100,000 borrowed. When rates rise by 2%, a $300,000 loan will then cost over $360 more per month, or $4300 per year. If you keep the property for seven years that becomes $30,000! Significant.

The incentives run out April 30th and I recently attended a seminar where it was agreed by those present that rates will be up by summer. Now we know that noone really knows these things, but at 5% it really is a question of when, not whether.

No matter what price range, it is likely that the net value of acting now will be dramatically greater than six months to a year from now. By then there will probably be no tax credit, 6-7% interest rates and higher prices because of less foreclosures.

If you're going to act, act now.

If you're not going to act, all the best to you as well.

Write or call.

206-919-5191.

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Date: Monday, February, 22nd 2010 @ 11:26:58 AM
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Short sales, Interest rates & Tax credits

Want to own a home (or a different home)?

If you're going to act, act now.

If you feel bullish about your future and you qualify under today's loan underwriting guidelines, there is likely never to be a better time for you to move into the real estate market. Interest rates around 5%, prices are flat and the federal government wants to give you $6500 to $8500.

Do the math:

Every percent of interest rate represents over $60/month per $100,000 borrowed. When rates rise by 2%, a $300,000 loan will then cost over $360 more per month, or $4300 per year. If you keep the property for seven years that becomes $30,000! Significant.

No matter what price range, it is likely that the net value of acting now will be dramatically greater than six months to a year from now. By then there will probably be no tax credit, 6-7% interest rates and higher prices because of less foreclosures.

If you're going to act, act now.

Write or call.

206-919-5191.