Upside to a Down Market

I know we've written several blogs on what a great real estate market is hidden in this down economy, but if the timing is right for you, you won't want to miss out on this opportunity!

Government intervention has caused the mortgage rates to slip below 5% and they could dip even lower. Talk to your Lender now and if you need a reliable recommendation, we are happy to give you several names from which to choose.

We've all heard that no one is lending money and that is simply not true! Here's your best bet...1) stay with conforming loans - those guaranteed by government enterprises such as Fannie Mae and Freddie Mac 2) protect your credit score - you need a score of 680 to get the best rates 3) equity is King - those with the most equity will get the best rates and 4) refinance only if there is a benefit to you. To determine how many months it will take to pay for the costs of refinancing, divide the closing cost amount by the monthly savings. For example, if the closing costs are $2500 and the monthly payment difference is $150, it will take 16.67 months to recoup the cost of refinancing. It only makes sensce if you plan to be in the home that long.

If you need someone to walk through the different scenerios, we are always happy to help you!