I was sitting in a meeting with a title agency and a mortgage company yesterday and they brought a few, very important, facts to my attention. I thought I would pass them along to everyone. This information is very important and may help some of you in your Real Estate decisions this year.

There are some major changes coming to our Real Estate market, locally and nationally. Interest rates are projected to rise steadily for the rest of the year. They may reach 6% by the spring and continue to rise to 7% by the end of 2010. Just to put this into perspective, on a $200,000 mortgage a monthly payment at 6% would be around $1,200 and at 7% would be around $1,330. This can affect how much house you can afford.

FHA loans currently require a 3.5% down payment but the FHA is considering increasing the required down payment. This too can affect how much house you can buy due to the out of pocket requirement.

April 30th is the final deadline to put a house under contract and still get the Extended First Time Home Buyers & Move up Buyers Tax Credit. They will not extend this program again.

If you have been thinking about selling or buying a home, the time has never been nor will it ever be better than right now.  With interest rates still around 5.25%, Tax credits, FHA loans still offering only 3.5% down payments compared to conventional loans at 20% down payments, and exceptional home values, don’t wait another minute. I would be happy to discuss your individual needs and options with you anytime. If you have additional questions please ask! I want to make sure you have all the tools to act fast and save money in today’s Real Estate market.