Nov 26, 2012

What are you waiting for?

well we now have the fiscal cliff looming but rates have still held- not sure how long the federal government can continue to buy bonds and keep the rates low - we keep hearing rates cant go up cant afford it - but there will be a time when the lenders will want their money and as things improve whether slow or quicker rates will go up fast. if you buy now and lock in at unbelievable 15 and 30 yr fixed rates you got CHEAP money. yes you may not get for your house what you would have several years back but your not going to pay what you would have for that move up house that you would have years ago. if you sit on the fence too long you may just end up with a fence post in the wrong spot!!!!

Nov 8, 2012

The Morning After

It's over the no more phone calls, TV ads, radio ads, mailers, talking heads etc. - now what? time to watch. without getting on a soap box some issues that may affect you: homeowner interest deduction- talk of getting rid of this, one of the incentives to own your own home - build equity save on taxes.  capital gains talk of increasing the rate on gains this also affects the housing market - if investors have to pay over 50% on the gain it takes away the incentive of buying - so more houses on the market more vacant- more distressed lower housing values. Regulations - one of my favorite - first we had to increase the number of people who could buy houses, now new guidelines, regulations, laws every day - have a client who wants to get a $40,000 mortgage wants to put a good chunk down bank cant do the loan because it now falls under high cost loan and the bank can't do it on regular terms, another client has a line of credit on his house wants to take a out a long term mortgage with 50% equity has to pay a higher rate because that is now a cash out refiance to pay the bank back and take a mortgage out. VA talking about seller not being able to pay as much closing costs - want the banks to do it but they can't pick up that amount goes against the guidelines, veterans who deserve a break especially when they all come home may be punished even more than the sacrifice they have already made? almost every economist says the real estate industry and housing is the cornerstone of our economy... ????