To refinance or not to refinance

Rates are at all time lows. They have been lower than we ever thought possible for an extended time. But just because rates are low, does that mean it makes sense to refinance?
Every home owner's situation is different. Just because you can save 1% on your interest rate, doesn't necessarily mean the refinance makes sense. You have to look at the big picture. What is the cost of the refinance, how much time are you adding on to your mortgage, etc. If the mortgage professional you are working with doesn't look at the "big picture" maybe they are just in the transaction for the paycheck, and not for the lifetime client.
It is my belief that not making money today because I am honest about a client's financial position, will benefit much more down the road than it does if I push a product for my financial gain. Clients should always come first, and you should treat them how you want to be treated.
This is one of my business philosophies.

Rates will move, they are going to go up!

If you or a family member are considering purchasing, but you are waiting for rates to get to 4%, you are going to be disappointed. Interest rates will start a climb to the higher, and it will start soon. Don't miss out on the most amazing rates we have ever seen, because you think you may get .125% less. Is it worth it, if the rate goes up? A purchase changes if the rate goes from the current 5% to 5.5% which we believe to be right around the corner.
Jump off the fence, the real estate mortgage is now the perfect storm for buyers.

What do we really need?

I always want to be informative when I write on this blog, but sometimes I am just stumped. There is news out today that FHA may be in financial troubles, they do will (may, don't) have the required reserves that the government imposes. This can and may well be a huge problem in the coming months. Some of the insiders believe it will push FHA to requiring a 5% down payment instead of the current 3.5%. There are arguments on both sides of this issue right now. Some say, if you up the down payment requirement, less people will own, others say that if they can't put 5% into the purchase of their home, should someone really be buying? I am not sure where I sit in this debate. I understand both sides. I also realize that Americans are burdened with debt, because of the images we are sold. Rarely are we happy with what we have, we always want more. Credit in general is very easy to get and that just makes getting what we want that much easier, even if it takes us ten years to pay it back.
I think Americans need a new perspective on the "American Dream." We need to re-evaluate our lives and really see what is important. It will be different for all of us, but I am sure all of us could figure out "things" we could live without.

November 9, 2009

Time just seems to disappear right from underneath us. I cannot believe we have 2 1/2 weeks until Thanksgiving and then Christmas...my son said last night, mom I only have 2 months until I am eleven. I told him he was crazy..then I counted. He was right. It seems that we all live by schedules and due dates and before you know it the days, weeks, months and years have gone by. I think I better get going today, so that I don't miss another minute.

Hooray First Time Homebuyers!!!

The government in their infinite wisdom has extended the first time home buyer credit to June 30, 2010. They added a little more with a $6500 credit to current home buyers who purchase. There are restrictions, but more incentives for buyers. Hopefully that will help keep our real estate market from going down any further.

Not just yet...

Though there is much talk about extending the first time buyer credit, nothing has been ironed out or agreed upon yet. So, that being said, you must close by 11/30/09 to qualify. Also remember, that the county recorder's office (at least in San Joaquin County) will be closed the day after Thanksgiving. Monday the 30th will be a crazy day. Try and get your purchases done by the 25th, to have a happy and stress free end of the month.