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Recent govenment debate of guarantees on Home Mortgages could lead to decisions that could eliminate 30-year mortgages. That means home financing would be much like in other coutnries today. Short loan periods, High down payments & High qualification requirements. The average person may no longer be able to buy a home using a mortgage.
See the MSN article for more details:
http://realestate.msn.com/article.aspx?cp-documentid=28110830&Gt1=35010
1. 30-Year mortgage may be going away. The feds are debating on removing government guarantees on mortgages. If that happens, the 30-year mortgage will most likely be eliminated from most lenders options.
2. Mortgage criteria are going to be much more stringent. The down payment requirement for mortgages will increase & may require 20%-30% or more for a mortgage. The minimum required credit score will be much higher possibly 690 or higher.
3. Rental rates are rising and are expected to continue to rise as many will no longer be able to qualify for a mortgage.
Don’t get stuck in the rental rut, buy now while you still can.
Read below for more information:
| Mortgage News 3 Financial Reasons to Buy Now By The KCM Crew |
 Here are three great financial reasons why you should not wait before taking the plunge into homeownership.
1. The 30-Year Mortgage May Disappear There has been much debate regarding government’s role in providing support for homeownership. There are several experts who believe if Fannie Mae and Freddie Mac’s roles are eliminated, or even limited, it may be the end to the 30-year mortgage. This concern is addressed in MSN Real Estate’s, Is it curtains for the 30-year mortgage? 2. QRM Requirements Could Be Much More Stringent Here are proposed changes to the requirements for a ‘qualified residential mortgage’:
There would be loans available to purchasers who don’t qualify under the new rules. However, they will probably be more expensive to the buyer (both in rate and costs). 3. Rents are Expected to Increase The supply of available rentals is decreasing and the demand is increasing. That will lead to an increase in rental costs throughout the year. The Wall Street Journal recently quoted a report by Reis, Inc in which it states, “Expect vacancies to continue declining, and rents rising through the rest of 2011 at an even faster pace.” Bottom Line You may be waiting on the sidelines to see if prices will continue to depreciate before you purchase a home. The mortgage expense is a major piece in the overall financial picture of homeownership. Make sure you consider it when timing your decision. Reprinted with permission. All Contents ©2011. Steve Harney. KCMBlog.com. |
A recent flurry of sales for homes priced over a Million Dollars sets new precedents. The wealthy are usually in tune with economic turns & in Real Estate, if you follow the money, you usually do well. The money is now telling us to Buy! Buy! Buy! Inventory for Million Dollar homes has declined 75% since a couple years back. We now se an inventory of just over 12 months on the market ( A normal market is 6 months). That is a big step in the right direction. Many are buying real estate now because they percieve the worst is over & Mortgage rates are still low. It is becoming increasingly difficult to find quality homes at reasonable prices in relation to market values.
The return on a home purchase will be much more than your return on funds stashed in a bank account. Once inflation starts to take hold, the best way to hedge your bets will be by owning assets that keep pace with inflation. Real Estate has always proven to be the asset of choice for just about everyone with financial savvy.
Buy Mom a Home! – She Will Love You For It! She will also be proud of how smart you are. We are in one of the best opportunities of your lifetime, right now. Good Inventory choices & low interest rates make buying a home now a no-brainer. How often have we wished we could go back in time & do something different. How many would like to go back to the 70s & buy stock in Apple? We may not have a crystal ball but it does not take much effort to see that the houseing market can only go up from here. It has been proven for over 100 years that real estate is the best investment anyone can make. In a healthy market, a home usually doubles its value every 10 years.
SO go ahead, make Mom proud and she will love y ou for it & she may like you more than you brother or sister too!
(Don’t forget to let her know how much you love her too & how much she means to you)
If you watch CNN at all, you have probably noticed their nutty financial advisor, CLARK HOWARD. All his life, Clark has been obsessed with money, making, it, saving it & investing it. By the time he was 31 he had saved enough to retire. He is fun & exciting to watch and I have become a fan of his strategies. He may be kooky but he holds your attention & he gives SOLID financial advice.
I caught one of his shows the other day & he says NOW IS THE TIME TO BUY INCOME PROPERTIES. He is not alone, I personally have seen my investment buyers increase the number of purchases and more & more investors are contacting me to look for properties for them. Below you will find a link to Clark Howard’s show when he talks about buying income properties and why he feels NOW is the time to Buy! Buy! Buy!
See Clark’s show below:
http://www.cnn.com/video/#/video/bestoftv/2011/04/28/exp.howard.property.investment.hln
How will Bin Laden’s death affect the Real Estate Market?
In the least, the uphoria could provide a boost to the recent burst of sales in Real Estate. We have seen sales posted like we have not seen in years, especially in Coconut Grove, Coral Gables & Brickell. The general perception is that we have hit bottom and are on the road to recovery. Properties under $250,000 have held steady for over 2 years now and other categories have seen improvement as well. Properties priced at $1 Million plus have seen a burst in sales as well. Most agree that consumer confidence is coming back & a recent increase in the stock market has been attributed to the end of Bin Laden. What about Real Estate? I think you will see the increase in sales to continue & begin to snowball.
This news about Bin Laden’s demise could not have come at a better time for the US. Housing inventory has been declining and sales increasing at rates that will put the market in a healthy balance ahead of projections. Here is to a very promising future.
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