Are Mortgage Rates Triggering A Home Loan Boom?

Is Now The Time To Buy Or Refinance A Home?

Today's low mortgage rates are astonishing. They are so good that re-financing and home purchases have grown dramatically since January 2009 – despite being in the middle of a recession.

“Freddie Mac announced that the 30-year mortgage (fixed) rate fell to 4.78% (lowest since 1971) in the last week of March.  Ben Bernanke, Chairman of the Federal Reserve, in his testimony to the U.S. House of Representatives last November said, ‘It is imperative that all banking organizations and their regulators work together to ensure that the needs of creditworthy borrowers are met.’

The Fed’s announcement in March 09 that it would buy $1.25 trillion in home-loan securities in 2009 is a clear sign of Bernanke walking his talk.  How effective will the Fed’s initiative be?

The initial signs are encouraging, with mortgage applications on the rise.  According to the National Association of Realtors (NAR), the sale of previously owned homes rose by 5.2% in March over the previous month, and the rise in ‘affordability index’ (released by the NAR) in January indicates that the lower home values and mortgage rates are having an impact on the home market.” —Chris McLaughlin

If You Ignore The Mortgage Market in 2009, You’ll Hate Yourself Later

Right now is the time to buy a home or refinance the one you’re in. Why? Because today’s low mortgage rates are astonishing. They are so good that re-financing and home purchases have grown dramatically since January – despite being in the middle of a recession. You owe it to yourself to track these low rates and take advantage of them while you can. With all of our tax payer’s money flying out the doors for bailouts, who knows what kind of inflation we’re going to get hit with in the coming years.

Here are a few highlights of 2009 mortgage and real estate characteristics for Denver Metro:

First-Time Homebuyers Get $8,000 Tax Credit

If you are a first-time homebuyer, you may qualify for a whopping $8,000 tax credit from the Federal Government. Here’s how it works:

• You must purchase a home before December 1, 2009
• Your income can not be more than $75,000 for an individual or $150,00 for a couple to receive the tax credit
• The tax credit does not have to be repaid
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000
• The tax credit is refundable – meaning you can use the credit to offset what you owe the IRS or get a refund if you don’t owe anything

By the way, you might be a first-time homebuyer and not realize it. It doesn’t matter if you have ever owned a home. It only matters if you have owned a home in the last 3 years. If that’s you, then you qualify.

100% Financing For Veterans

Over the past couple of years 100% financing has been virtually eliminated. Except for Veterans, that is. If you are a Veteran you may be able to purchase a home with little to no down payment money out of your pocket. You may still need to cover the closing costs but there are all kinds of strategies to help you there. And, yes, you also get the $8,000 tax credit if you’re a first timer.

Visit http://www.homeloans.va.gov/elig2.htm to determine your VA loan eligibility

“But The Banks Aren’t Lending!” Oh, Really?

I talk to people every day about real estate and I hear this all the time, “I can’t get a loan because the banks aren’t lending and credit is tight.” I can tell you directly, that is not true. There is plenty of money to go around for typical home buyers. I know you won’t hear that on the national news but it’s true. I help people get loans every day at fantastic rates with little difficulty. Then why all the media hype about stingy banks? Simply put, sensationalism causes people to watch their gloomy news stories!

Lending is difficult in other areas, though - like commercial business. Likewise, it is very difficult to get a loan over $600,000 if you don’t have at least 10% down payment. Nevertheless, it is important for you to understand that banks are lending to typical consumers – you and me. So what is required?

You will need:

• Between 3.5% - 10% down payment
• A job
• Decent credit scores

I’ve Got Bad Credit – Am I Out of Luck?

It is true that you may have more difficulty getting a loan if you have bad credit. However, DO NOT let that discourage you. Your situation is not hopeless. There is a little known process called credit rescoring that just may be your salvation. Credit rescoring is DIFFERENT from credit repair.

I have watched some clients increase their credit scores OVER 100 points simply by making a few easy phone calls. And, their new scores were effective at the credit bureaus within 72 hours. You owe it to yourself to work with a professional mortgage broker (hint: me!) to determine what can be done to get you qualified.

2009 Will Be A Great Year For Mortgages

Buying a home or refinancing is a question only YOU can answer for yourself. There’s little doubt that buying or refinancing requires research and prudence. However, too many people make the serious mistake of waiting until “just the right time” but that time never comes. Or it comes too late. 2009 is going to be a great year for real estate. You don’t want to miss it. 

I’d love to be a part of helping you achieve your goals.  My business continues to grow one happy customer at a time because I focus on what is best for YOU. I believe that serving your best interest will come around and bless my life, too. That’s the way I’m wired.

If you are even remotely considering buying, refinancing or selling contact me and let’s talk more about your desires. I will be honest and forthright, I will not pull any punches, and I guarantee that you will be better informed to make the best decision for you.

Regards,