You can’t read a newspaper, watch television or go on the Internet without hearing about the records being set by rates on home loans this year. It is a truly amazing era we are experiencing right now as all stars are being aligned to support homeowners and those who desire to become homeowners. Rents are being increased, home prices are still affordable in most areas of the country, rates are at record lows and the government has released programs to help owners refinance. Thus, the housing market has awakened from its slumber.
While homebuyers are realizing an era of extreme affordability, those who already own homes are refinancing at record levels. Did you know that lowering your rate by as little as one percent could lower your payment by approximately $200 or 15% of the principal and interest payment on a $250,000 loan? Or, you could save tens of thousands of dollars in payments by converting the savings to a shorter loan term — either 20 or 15 years.
I would say more myself–but I think that the media has said it all. So I will just quote a few articles released recently…
A big drop in inventories of for-sale homes across the nation has led to a buying frenzy in some sought-after neighborhoods, real estate professionals report. A gradual gain in home prices is also following suit, they say. Recently, the National Association of Realtors reported an increase in pending home sales in every region in the country…Forbes
More borrowers are shortening their home loan terms, and are considering paying off their loan a possible feat. Record low rates have allowed more borrowers to refinance their loans from 30 years to 15- or 20-year terms. A recent Freddie Mac report shows that 31 percent of recent refinancers shortened their loan terms, a much higher than normal level. Historically low rates and an average three-quarters of a percentage point difference between 30- and 15-year fixed-rate loans are important drivers for moving to a shorter term, Frank Nothaft, Freddie Mac’s chief economist…Freddie Mac
The housing market has been the biggest drag on the economy, but consider what’s been happening lately. House sales are up, rates are the lowest ever, and builders are starting to build again. “People are out there looking at houses, thinking about buying house,” said Yale University professor Robert Shiller, who tracks housing prices across the country…CBS News
The housing market is continuing to recover. Prices are rising. Sales are increasing. Home builders are clearing lots and raising frames. “I think the fundamentals look better than they’ve looked in 17 or 18 years, said Richard K. Green, a professor of real estate at the University of Southern California. Professor Green cited the combination of rising rents and low rates on home loans as a powerful inducement to potential buyers.” The New York Times
If you are ready to take advantage of this historic era for homeowners–now would be the time to get moving. I am ready to help you achieve your goals and I am always available to help others you might refer.
