Our Real Estate Blog

Mortgage and Real Estate Update / Good and Bad News

January 31st, 2008 10:10 AM by Lehel Szucs

First, the bad news:

Home values are dropping and will more than likely continue to do so in most markets through 2008.

Prior to seeing a recovery in housing prices, values may remain flat for some time.

Since July 28th, 2007, the lending industry has been shaken up due to the downgrading of mortgage backed securities

Mortgage Lending guidelines have changed due to dropping home values and an increase in mortgage defaults.

The Index of Leading Economic Indicators (LEI) suggests we are heading into a recession.

The stock market has dropped like a rock since January 1st, 2008
Now the Good News:

Money has flowed out of the stock market and into Mortgage Bonds
Conforming interest rates at best levels in over 2 years  (Jumbo ARMs very good too).

Excellent time to purchase a new home as values have come down to realistic levels.

Excellent time to refinance before values potentially drop further.
Consider the following:

  • Refinance your existing 1st mortgage at a lower interest rate and monthly payment
  • Consolidate a 1st and 2nd mortgage into a new 1st mortgage at a lower overall monthly payment
  • Consolidation your existing mortgage, credit cards, and auto loans into one lower monthly payment
  • Purchase a new home at today's excellent rates and low purchase price
    Special Programs to consider:
    • Jumbo loan programs to 95% financing (full income documentation)
    • Jumbo stated income loan programs to 90% financing
    • With values dropping in the real estate market, now may be an excellent time to refinance your existing mortgage.
    • Home values are projected to fall further from their current values.
    • This will make it more difficult to refinance with your equity position shrinking.

Should you, or someone you know, like to take advantage of the 2+ year low in interest rates, please contact us now for a free consultation and report.
Please take advantage of this now by giving us a call.

Posted in:General
Posted by Lehel Szucs on January 31st, 2008 10:10 AM



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