Archive for the ‘Real Estate’ Category

Four HUGE reasons to buy or refi RIGHT NOW!

With the economy rebounding (albeit slowly), and housing markets coming to life (hopefully), many borrowers are choosing to sit on the sidelines and wait out the final convulsions of the credit crisis/mortgage bubble/housing slump.  Strategically speaking, is this the right decision?  Is it better to adopt a wait-it-out mentality, and make a move after we’re on the road to a full and complete recovery?

In a word….no.

Why is it a good idea to jump off the fence and purchase or refinance right now?  Well, there’s a good reason for that…in fact, there are FOUR huge reasons to purchase or refinance right now.

Reason #1: The Fed is taking their ball and going home.
The Federal Reserve has been purchasing mortgage bonds over the past year, all in an effort to keep mortgage rates low and help spur the housing market.  Know what?  It’s worked…beautifully in fact.  However, this mortgage bond purchase program comes to an end March 31st and there is an enormous amount of speculation in the lending industry surrounding how rates will respond come April 1st (ironic date eh?).  Some think rates will bump up 0.50%, while others see an immediate 1%+ jump into the low to mid-6’s.

What will happen?  We don’t know.  What we do know is that rates will begin to rise sometime after that cutoff date, making now the perfect time to capitalize on an artificially low interest rate environment for would-be purchasers and refinancers.

Reason #2: No more free money.
The home-buyer tax credit for first timers and current owners ($8,000 and $6,500 respectively) will expire on April 30th (you need to be under contract by then to qualify for the credit), and as of 2/10/2010 the IRS has released no word on whether or not it will extend the program.  Anyone looking to capitalize should speak with their Lender and Realtor immediately.  Don’t have a Lender or Realtor?  Feel free to contact me – I’m an active loan officer lending in OR/WA/CA and would be happy to help.

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