Mortgage Planning for Today
Posted by Mike Balster
Sandy Nichols introduced Sandra Sansoni, a certified Mortgage Planning Specialist with Equity Reach Mortgage Solutions. Sandra believes that the key to business is to create an experience for your clients that will inspire them to return again and refer their family and friends.
Sandra believes this is a good time to buy as it is a buyers market. Interest rates are usually similar to CD rates but now it is different, CD rates are at their lowest in recent history yet interest rates aren't at their lowest levels.
The bond market also affects most interest rates. The economy has recently been hard to predict due to new factors in addition to the historic factors. The global economy, now more than ever, affects mortgage interest rates. The stability of the world has a direct affect on interest rates and our government purchasing T-Bills to stimulate the economy affects perceptions and in turn interest rates. A recent spike in interest rates, 4.9% to 5.6%, surprised most home buyers but the rates are still historically low. Sandra says, "Do it now", the rent vs. purchase decision has clearly swung to make home purchase much more attractive. First time home buyers may qualify for an $8,000 tax credit and possibly $18,000 if a new home is purchased by a first time buyer. Sandra feels that there is no crystal ball, home buyers need to act and stop trying to predict the future. The real estate market prices are dictated by the general economy, as the economy stabilizes the home prices and interest rates will be free to rise. Many of the 5 year fixed loans which are good for an appreciating market are converting to their adjustable term. These loans aren't so good in a down or flat market.