Home Mortgage Magazine

Current Home Mortgage Rates; Market Condition Commentary 03/18/09

Mar 19, 2009 Mortgage Savings Leave a comment

Mortgage Markets:

Currently Market conditions for initiating new loans and/or refinancing is very favorable and not seen in half a century. Refinancing market is getting better everyday. Just today 10 yr Treasurery dropped 0.5%, that is a huge drop in interest rate in one day. This is because Fed launches bold $1.2T woth of effort to revive economy, FED is buying 300B dollar worth of Treasurery notes.

With the country sinking deeper into recession, the Federal Reserve launched this new program and it will bring Mortgage rate down further. One should take this opportunity before it is too late. Time will pass, bad time will be over and you will have nothing but regrets that you did not take the opportunity that was at the door steps. Mortgage rate has been dropping in recent days. Current thirty year mortgage rate is at historic low, 5.0%.

Don’t misunderstand, times are tough and everyone is in a different situation. However if you can afford, this is the time to get that first home that you ever wanted. Stimulus package includes additional incentive, be sure you take advantage of $8000 first time home buyers credit. Tax advantages for individual should also be considered when you are buying a home which can be thousands of dollar savings. Home prices are at the bottom and mortgage rates are at bottom. Best of the both Worlds, and a golden opportunity. Here are the mortgage rates in the current market for you to choose from as of 03/18/09

These are tough economic times (Government Stimulus Details and TARP Details) and lots of people are looking for improving their home rather than making a new investment. Today’s, March 18^th 2009 Mortgage rate of 5% may not last long, If you do have equity built up in your existing home and you have a need to expand or improve your home you should consider this type of cash out refinancing loans.

This is the best time to get a home improvement loan if you have a good credit and a stable job. Home improvement rates have dropped to the rock bottom. You can get a loan or a mortgage from your local bank and pull out cash (Current rate below 5%) to add an extra room, bathroom, a game room or even a bedroom. Banks and mortgage companies normally offer special incentives for these types of home improvement loans. If foreclosure in your neighborhood is rising, then your home value may be declining and that may pose a risk of obtaining a home equity loan.

President Obama’s Homeowner Affordability and Stability Plan

Mar 5, 2009 Uncategorized Leave a comment

Press Release from the Mortgage Bankers Association

First Look at Key Provisions in the Homeowner Affordability and Stability Plan

Overview: The “Homeowner Affordability and Stability Plan” seeks to help borrowers through one of or a combination of three tools:

1) Using Fannie Mae or Freddie Mac to refinance borrowers whose LTV exceeds 80 percent and extends up to 105 percent;

2) Provide incentives to lenders to assist borrowers, even before they are in trouble; or

3) Allowing judicial modifications of mortgages during bankruptcy for borrowers who have run out of options. Empowering judges to make such modifications to the loan would have to be authorized by Congress first.

Utilizing Fannie Mae and Freddie Mac: The plan would enable borrowers who have conforming loans owned or guaranteed by Fannie Mae or Freddie Mac (GSE) to refinance through the agencies, even if the loans have loan-to-value ratios (LTVs) higher than 80 percent but no greater than 105 percent. (Current law prohibits Fannie Mae and Freddie Mac from owning or securitizing loans with an LTV greater than 80 percent unless private mortgage insurance is utilized; it is unclear how this will be addressed in the plan.) The plan increases the funds available for each GSE from $100 billion to $200 billion under the Preferred Stock Purchase Agreements and increases the GSEs’ portfolio caps by $50 billion to $900 billion, along with corresponding increases in the allowable debt out standing. Treasury estimates that this use of Fannie Mae and Freddie Mac will help four to five million people.

Homeowner Stability Initiative: Under this aspect of the plan, Treasury will work with the GSEs, the Federal Housing Administration (FHA) and the Federal Deposit Insurance corporation (FDIC) on several activities, discussed below, including modifications, incentives guidelines for loan modifications, requiring that financial plan recipients follow the guidelines, allowing judicial modifications of mortgages in bankruptcy (cram down), requiring strong oversight, strengthening FHA programs and providing support for local communities. The government would commit $75 billion would to this “Homeowner Stability Initiative” or HSI.

Modifications: HSI would reduce payments through a reduction in the interest rate or principal. To participate a lender would be required to reduce the interest rate on the loan to achieve a 38 percent debt-to-income (DTI) ratio for the borrower, and then the federal government would share dollar-for-dollar with the lender to achieve a 31 percent DTI, either through interest rate or principal forgiveness. Lenders must keep the payment in place for five years, and after that time the interest rate may be stepped up to the current loan rate.

Incentives: HSI will provide incentives to mortgage lenders, servicers and borrowers. As indicated, lenders will receive Government cost sharing to lower borrowers’ payments to 31 percent. Mortgage servicers would be eligible to receive $1,000 up-front for making eligible modifications. Servicers would also receive success fees monthly, up to $1,000 per year as long as the borrower stays current. Servicers would be encouraged to reach out to borrowers before a borrower falls behind on his payments. If an at-risk loan is modified prior to a borrower falling behind, servicers would receive $500 and mortgage holders would receive $1,500. Borrowers in the program would receive $1,000 per year toward their principal, for up to five years as long as they remain current in their payments.

Insurance Fund: As a further incentive to lenders to modify mortgages, Treasury would establish a partial guarantee insurance fund of up to $10 billion to protect lenders from declines in home prices.

Uniform Guidance: Treasury will establish uniform guidelines on mortgage loan modifications for all lenders / servicers that will be required to participate in the HSI. Fannie Mae and Freddie Mac also will use these guidelines on loans they own or guarantee and the administration will work with regulators and other federal and state agencies to implement these guidelines across the mortgage industry. Vigorous Oversight Treasury will require strong oversight, mandatory reporting and quarterly meetings of Treasury, the FDIC,the Federal Reserve and HUD to monitor performance.

Bankruptcy Cram Down: Allows judicial modifications of home mortgages under Fannie Mae and Freddie Mac’s conforming loan limits during bankruptcy for borrowers -borrowers MUST ask lender for modification before seeking bankruptcy remedies. This provision would require a legislative change in the bankruptcy code. Under the proposal, the principal in excess of 100 percent of property value would be deemed “unsecured indebtedness.”

Community Assistance: Provide$1.5 billion in relocation and other forms of assistance to renters displaced by foreclosure and $2 billion in neighborhood stabilization funds.
FHA Improvements: The plan would ease restrictions in FHA programs including Hope for Homeowners including reducing fees paid, increasing flexibility for lenders to modify troubled loans, permit borrowers with higher debt loads to qualify and allow payments to servicers of existing loans.

Matters that Could be Improved Upon

Coverage: The plan does not appear to cover underwater borrowers with a greater than 105 percent LTV. This is a particular concerning in areas such as California, Florida, Arizona, and Nevada. It may force them to seek bankruptcy protection.

Warehouse Lending: The Plan does not address the diminished availability of warehouse lines of credit. Without these lines many independent mortgage bankers will not have funds to assist borrowers.

Appraisal Code: It is not clear how the appraisal process will work under this Plan. The Administration may want to consider suspending the Home Valuation Code of Conduct signed by Fannie Mae and Freddie Mac with the New York Attorney General and addressing the appraisal process more comprehensively at a later date.

Bankruptcy Cram down: MBA continues to oppose bankruptcy cram down for any first mortgage indebtedness.

Non conforming Loans: Another limiting factor of the plan is that it doesn’t offer assistance to borrowers with jumbo mortgages and those whose mortgages are in private label securities. It also doesn’t provide servicers with a sufficient safe harbor to avoid litigation from the investor or mortgage holder when the servicer is trying to help a borrower with a jumbo or non-agency mortgage.

2009 Stock Market Crash and Mortgage Market Crash

Feb 28, 2009 General, Lite Reading Leave a comment

Who is responsible for Market Crash?

The rapid decline of individual wealth and global wealth is not a crisis created by market itself but manipulation of markets by government elected entities. This vicious down turn is blamed on to the so called “up-tick rule” which was removed by SEC on July, 2007. IF you look at the market it clearly shows deterioration after that date. See Chart below.

Do you see the co-relation? Why suddenly market turn feverously on a down draft? Because vultures were invited for a feast, feast that normal citizens gathered in their 401k for years of hard work. Here is how up-tick rules work that was created during 1929 crash. (Why the heck you remove the rule that worked back in 1929, and worked for last 80 years, why would someone mess with this? Good question, ask your elected officials)

What is uptick rule? When a trader wants to SHORT SELL a security they have to follow “up-tick rule”. This rule says one can sell short a security once and have to wait for “Up-tick” in the price of the secutiry before they can sell short again. i.e. Once security is shorted, buyer has to come in to buy a security before another short sell is executed. This prevents “Bear Raid”, some one to take over the market and pound a good stock down to zero, that is what is happening in the market today.

YOU do not have to believe me, go to SEC web site and find it for yourself, www.sec.gov, how SEC repealed this 80 year old rule. This uptick rule must be restored as Chairman Bernanke mentioned in his testimony this month before the House Financial Services Committee. There are studies suggest that the uptick rule should be restored. There are plenty of evidence for increased numbers of “bear raids”—when short sellers rapidly sells stock in the hope of triggering margin calls or driving other investors to sell due to fear.

One would ask what this has to do with the MORTGAGE MARKET, well, all the mortgages since year 2000 has been bundled up in to so called CDO Securities and sold on to the stock market, so when Mortgage market had little difficulty, Stock market just crashed as the cushion effect, shock absorber, of uptick rule was gone and there was nothing to absorb massive shocks. And that drove Mortgage market further down, vicious cycle.

The selling of securities on the New York Stock Exchange (NYSE) from 1938 till June,2007 was regulated by the “uptick rule.” Why is suddenly this rules been removed?

President Obama’s Homeowner Affordability and Stability Plan

Feb 22, 2009 Lite Reading, Mortgage Savings Leave a comment

Who is Eligible for US Government Economy Rescue Plan?:

This Act is designed to help US economy and not necessarily argued that one home owner got help and other did not. If economy recovers, everyone is helped, some by directly freshly injected cash and others by indirectly, by not losing their asset values further and stopping continual deterioration of their wealth. Contraction in the economy and in the housing market has created devastating consequences for homeowners and communities throughout the country and the world.

This is one of the legs of THREE LEGGED stool approach that government is taking. One leg being Home Mortgage and Home price stabilization (Stabilize consumer), second leg being stabilize the BANKS (Stabilize back bone) and the third, ~$800B stimulus package – build America program (Start re-building for future).

This Stability Plan is part of the President’s comprehensive strategy to get the economy back on track. The plan will help many home owners restructure their home mortgages and avoid foreclosure or help save money on their mortgage. Every MORTGAGEE should try and see if this act helps them reduce payment. Every reduction in payment will help the economy.

There are two groups of people who need help with the Mortgage, see which one you fit in. Here is the summary of the plan and three main goals.

1: AFFORDABILITY: Provides help to low-cost refinancing for ALL home owners who’s home prices have fallen (Provide low interest rate loans to ALL)

Current Mortgage rates are historic low and everyone should question their mortgage payment. One quick phone call could save you thousands of dollars in payments. If you owe more than 80 percent of the value of your homes and cannot refinance, this plan may help you. Homeowners who took out conforming loans owned or guaranteed by Fannie Mae or Freddie Mac to refinance through those two institutions.

Reducing Monthly Payments: For families who’s mortgage is not under water, this plan will help as it does not require 80/20 LTV (loan to value) ratio. For many families, a low-cost refinancing could reduce mortgage payments by thousands of dollars per year.

Consider a family that took out a 30-year fixed rate mortgage of $134,000 with an interest rate of 6.75% on a house worth $160,000 at the time. Today, that family has about $130,000 remaining on their mortgage, but the value of that home has fallen 15 percent to $136,000 – making them ineligible for today’s low interest rates that now generally require the borrower to have 20 percent home equity. Under this refinancing plan, that family could refinance to a rate near 5.16% – reducing their annual payments by over ~$2,000.

2: STABILITY: Government has created A $75 Billion Homeowner Stability Initiative to Reach Millions of Home owners At-Risk (Provide $equity help, Provide lower interest rate, Provide $ incentive)

This plan helps you even if you are current on your mortgage payment. Home owners who’s home value has fallen and are hit by recession, their loan is underwater (They owe more than the value of the house) so even with the lower home value they cannot afford the house payment, government is helping them reduce their payment and AVOID FOROCLOSURE – particularly those who received subprime and exotic loans with exploding terms and hidden fees. The Homeowner Stability Initiative helps those who commit to make reasonable monthly mortgage payments to stay in their homes – providing families with security and neighborhoods with stability. This provides no help for speculators or investors.

Eligible home owner, this will ….

- Lower your interest rate

- Lower your Payment

- May lower your home principle balance

- Receive $1000/yr for five years

- May be eligible for $1,500 one time payment

This will protect neighborhood as home prices will stop falling and stabilize at current level or even rise. The Homeowner Stability Initiative has a simple goal: reduce the amount homeowners owe per month to sustainable levels. Using money allocated under the Financial Stability Plan it has several key components:

Shared effort between borrower, lender and Uncle Sam: as an example, household with payments adding up to 43 percent of his monthly income, the lender would first be responsible for bringing down interest rates so that the borrower’s monthly mortgage payment is no more than 38 percent of his or her income. Next, the initiative would match further reductions in interest payments dollar-for-dollar with the lender to bring that ratio down to 31 percent. If that borrower had a $220,000 mortgage, that could mean a reduction in monthly payments by over $400.

That lower interest rate must be kept in place for five years, after which it could gradually be stepped up to the conforming loan rate in place at the time of the modification. Lenders will also be able to bring down monthly payments by reducing the principal owed on the mortgage, with Treasury sharing in the costs.

Servicer (Bank) incentive: will be an up-front fee of $1,000 for each eligible modification meeting government guidelines. They will also get up to $1,000 each year for three years.

Borrowers Incentive: to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.

Servicer initiative for being PROACTIVE: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicer, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.

Treasury will develop and institute uniform guidance for loan modifications across the mortgage industry, working closely with the bank agencies and building on the FDIC’s pioneering work. The agencies will apply these guidelines when permissible and appropriate to all loans owned or guaranteed by the federal government, Ginnie Mae, the Federal Housing Administration, Treasury, the Federal Reserve, the FDIC, Veterans’ Affairs and the Department of Agriculture.

3: STRENGHTHING Confidence in Fannie Mae and Freddie Mac:

Treasury is increasing its Preferred Stock Purchase Agreements to $200 billion each from their original level of $100 billion each. (Freddie and Fannie)

Current Home Mortgage rates and Market Commentary 2/18/09

Feb 18, 2009 Lite Reading, Mortgage Savings Leave a comment

Mortgage Markets:

Currently Market conditions for initiating new loans and/or refinancing is very favorable and not seen in half a century. As president Obama announces his plan for Mortgage rescue, this may get even better for first time home buyers across the country. One should take this opportunity before it is too late. Time will pass, bad time will be over and you will have nothing but regrets that you did not take the opportunity that was at the door steps. Mortgage rate has been dropping in recent days. Current thirty year mortgage rate is at historic low, 5.27%.

Don’t misunderstand, times are tough and everyone is in a different situation. However if you can afford, this is the time to get that first home that you ever wanted. Stimulus package may include additional incentive, be sure to check as soon as it gets approved. Tax advantages for individual should also be considered when you are buying a home which can be thousands of dollar savings. Home prices are at the bottom and mortgage rates are at bottom. Best of the both Worlds, and a golden opportunity. Here are the mortgage rates in the current market for you to choose from as of 02/18/09. If you do not want to spend upfornt closing cost, there are also no fee Mortgage in the market that you should cehck it before making a decision.

These are tough economic times (Government Stimulus Details and TARP Details) and lots of people are looking for improving their home rather than making a new investment. Today’s, Feb. 18^th 2009, Mortgage rate of 5.27% may not last long, If you do have equity built up in your existing home and you have a need to expand or improve your home you should consider this type of cash out refinancing loans.

This is the best time to get a home improvement loan if you have a good credit and a stable job. Home improvement rates have dropped to the rock bottom. You can get a loan or a mortgage from your local bank and pull out cash (30 year Mortage, Current rate below 5.27%) to add an extra room, bathroom, a game room or even a bedroom. Banks and mortgage companies normally offer special incentives for these types of home improvement loans. If  foreclosure in your neighborhood is rising, then your home value may be declining and that may pose a risk of obtaining a home equity loan.

Savings rate in the banks are rock bottom so you should take advantage of re-financing the loan. If you are looking to open a high rate savings account here is the best one out there.

Current Home Mortgage Rates; Market Condition Commentary 02/13/09

Feb 13, 2009 General, Lite Reading Leave a comment

Mortgage Markets:

Currently Market conditions for initiating new loans and/or refinancing is very favorable and not seen in half a century. One should take this opportunity before it is too late. Time will pass, bad time will be over and you will have nothing but regrets that you did not take the opportunity that was at the door steps. Mortgage rate has been dropping in recent days. Current thirty year mortgage rate is at historic low, 5.0%.

Don’t misunderstand, times are tough and everyone is in a different situation. However if you can afford, this is the time to get that first home that you ever wanted. Stimulus package may include additional incentive, be sure to check as soon as it gets approved. Tax advantages for individual should also be considered when you are buying a home which can be thousands of dollar savings. Home prices are at the bottom and mortgage rates are at bottom. Best of the both Worlds, and a golden opportunity. Here are the mortgage rates in the current market for you to choose from as of 02/13/09.

These are tough economic times (Government Stimulus Details and TARP Details) and lots of people are looking for improving their home rather than making a new investment. Today’s, Feb. 13^th 2009,  Mortgage rate of 5% may not last long, If you do have equity built up in your existing home and you have a need to expand or improve your home you should consider this type of cash out refinancing loans.

This is the best time to get a home improvement loan if you have a good credit and a stable job. Home improvement rates have dropped to the rock bottom. You can get a loan or a mortgage from your local bank and pull out cash (Current rate below 5%) to add an extra room, bathroom, a game room or even a bedroom. Banks and mortgage companies normally offer special incentives for these types of home improvement loans. If foreclosure in your neighborhood is rising, then your home value may be declining and that may pose a risk of obtaining a home equity loan.

Current Home Mortgage Rates; Market Condition Commentary 02/06/09

Feb 9, 2009 Lite Reading, Mortgage Tips Leave a comment

Mortgage Markets:

Currently Market conditions for initiating new loans and/or refinancing is very favorable and not seen in half a century. One should take this opportunity before it is too late. Time will pass, bad time will be over and you will have nothing but regrets that you did not take the opportunity that was at the door steps. Current thirty year mortgage rate is at historic low, 5.0%.

Don’t misunderstand, times are tough and everyone is in a different situation. However if you can afford, this is the time to get that first home that you ever wanted. Stimulus package may include additional incentive, be sure to check as soon as it gets approved. Tax advantages for individual should also be considered when you are buying a home which can be thousands of dollar savings. Home prices are at the bottom and mortgage rates are at bottom. Best of the both Worlds, and a golden opportunity. Here are the mortgage rates in the current market for you to choose from as of 02/09/09.

These are tough economic times (Government Stimulus Details and TARP Details) and lots of people are looking for improving their home rather than making a new investment. Today’s, Feb. 9^th 2009 Mortgage rate of 5% may not last long, If you do have equity built up in your existing home and you have a need to expand or improve your home you should consider this type of cash out refinancing loans.

This is the best time to get a home improvement loan if you have a good credit and a stable job. Home improvement rates have dropped to the rock bottom. You can get a loan or a mortgage from your local bank and pull out cash (Current rate below 5%) to add an extra room, bathroom, a game room or even a bedroom. Banks and mortgage companies normally offer special incentives for these types of home improvement loans. If foreclosure in your neighborhood is rising, then your home value may be declining and that may pose a risk of obtaining a home equity loan.

Question of The Day: Home Refinancing Choices

Feb 5, 2009 Lite Reading, Mortgage Tips Leave a comment

Every time you are at the life juncture where you have to make a decision about home mortgage, these questions always come up. Do I take a fixed rate home loan or variable, 15 year or 30 year or 7/25? Should I go to my local bank or call up a mortgage company. Same question also comes up when you are trying to refinance home loan. Here are some thoughts to help you decide.

Fixed or ARM?:

Fixed rate financing or re-financing ( ) has interest rate which stays constant through out the term of the loan. ARM is the “Adjustable Rate Mortgage” adjusts according to the economic conditions so it varies per the term noted in the contract. Choice could vary depending upon your current situation, how long you are planning to stay in the property and what type of cash flow outlay you like to invest in. Fixed rate financing does not require lot of analysis and that is the choice most of the people make. It is easy and contract is not complicated. ARM financing requires for you to predict economic condition and where the rate might be year from now, five year from now. If you are wrong in your prediction, you will be facing some serious situation out in the future and you might lose your property/ home.

Fifteen year or Thirty Year?:

There are many different refinancing options that you can take. One of the option you will have to chose is fifteen vs. thirty year financing. One of the biggest difference is the payment amount. If you chose thirty year, your payment will be lower than fifteen year mortgage, however fifteen year mortgage will pay off in fifteen year, so you will be clear of making payments sooner. What you have to look for is where you are in your life, your age, your career, your tax bracket etc… before making this choice as it does impact your tax liability. Simple way to look at this is, if your tax liability is high and you are trying to save more money on the taxes then go for thirty year mortgage. Thirty year mortgage payment will have more in interest than the principle helping you deduct more from the taxes. Another thing to look at is your age, if you are young then you have longer time horizon and you can go with thirty year rather than fifteen, keeping more of the money with you rather than giving it to the bank.

Local Bank or A Mortgage Company?:

Now a days there are not lot of differences between banks and a mortgage companies as banks are becoming a big mortgage companies. Still you may want to look in to the situation to see if you can save some longer term money.

Banks are loaning money from the deposits that they have. Mortgage companies are lending investor’s money so they may be able to get you a lower rate depending upon what investor is willing to accept return on. If you have a good and long term relationship with a local bank you may be able to get some discounted rate with the bank. What this comes out to be is the homework, do some home work before you decide as you may be able to save some money month after month and year after year making in payments. There are some mortgage rate link located at the top of this web site so check out the mortgage rates as a part of you home work.

If you are looking for a new home there are plenty of foreclosure for you to find a bargain on, after all this is a buyers market.

Home Improvement Loans or Cash Out Refinancing

Feb 4, 2009 Mortgage Tips Leave a comment

These are tough economic times and lots of people are looking for improving their home rather than making a new investment. If you do have equity built up in your existing home and you have a need to expand or improve your home you should consider this type of cah out refinancing loans.

This is the best time to get a home improvement loan if you have a good credit and a stable job. Home improvement rates have dropped to the rock bottom. You can get a loan or a mortgage from your local bank and pull out cash to add an extra room, bathroom, a game room or even bedroom. Banks and mortgage companies normally offer special incentives for these types of home improvement loans. If foreclosure in your neighborhood is rising, then your home value may be declining and that may pose a risk of obtaining a home equity loan.

However before you go run to the bank and spend money it is wise to get an opinion of professional realtor. It does not cost you anything. Find a reliable Realtor and ask their opinion that what will be the return on investment for say spending $10,000 to improve a kitchen vs. improving a bedroom. There is always a silver line to the improvement. You want to make sure your investment will return when you sell the home out in the future.

Reasons to Refinance Before it is Too Late

Feb 3, 2009 Mortgage Savings, Mortgage Tips Leave a comment

Many people now a day have this question and if you do not have that question you should ask yourself again. This is a golden time for the home buyers and people who want to borrow money. Foreclosures are all time high and that is creating golden opportunities for buyers/investors. Money is so cheap that we have not had this type of environment in a half a century. This is a life time event and one should not take this very lightly.

You can ask, why do I go through the trouble of refinancing my home mortgage? The answers could be many depending upon your personal situation. Here are some basic reasons that you should consider refinancing or even buying a new home with a new financing.

Number one reason, lower your Mortgage Interest Rates: If you can pay less in the interest payment to borrow money, this is a not so difficult to understand type of a deal. If the interest rates in the current market is lower than what you borrow the money at, it is worth to look at saving some money every month

If you are planning to refinance your home mortgage, look at the difference in the interest rate of your current mortgage and the new Mortgage. If the difference is more than a percent and you are planning to stay in your home more than three years than generally it is worth the effort to refinance. Bigger the difference in the interest rate less you have to stay in the home to break even due to refinancing cost. This will save you money every month.

Buy a New Home: These are historic time, if you can afford the home, this is a golden time to jump in the real estate market. Most of the time when interest rate is low, home prices are high. If interest rate is high home prices are low. This is the best of the both world, you got low prices for the home and interest rates are low, making a home buying most affordable ever. There are many Foreclosed home for you to pick from at highly discounted prices.

Flexibility in Financing: Mortgage companies today have many different lending programs from Fifteen year, to Thirty year, to Forty year, to interest only mortgages, to three or five Year ARM’s and many different fixed rate mortgages that you are bound to find one of the program that can fit your budget.