Since the Federal Reserve has made significant cuts on interest rates, this could significantly decrease your Tempe mortgage rate, hence, decrease your monthly payments. Even though interest rates are historically low right now, rates are volatile so there is a possibility that interest rates could increase at any time. This is why many of our preferred lenders recommend that buyers not wait for interest rates to decrease more as the Tempe mortgage rates may already be at the bottom. Those who opt to wait it out to see if Tempe mortgage rates will drop even more before buying or refinancing a home, could potentially lose out on thousands of dollars of interest savings when interest rates begin to increase.

Currently, it is also a great time to lock in mortgage rates and, depending on individual circumstances; it may be a great time to refinance your home. Some variables to consider before refinancing your home are:
(1) How long do you plan on living in your home?
(2) How much lower will your new mortgage rate be?
(3) What will the closing costs be when you refinance?

If you do not plan to stay in your home for very much longer, it may not be a financially sound decision to refinance based on the closing costs needed to refinance. A reputable mortgage consultant can analyze your individual mortgage rate in comparison to refinancing options in order to assist you in determining whether or not it would be beneficial to refinance your home at present.

Please contact us if you would like a referral to some of our preferred mortgage
consultants or you can visit their websites.

• Joann Salatino, Mortgage Consultant

• Christopher Holmes, Certified Mortgage Planner

• Dan Heimann, Mortgage Professional

Whether you should sell your home now or wait to sell depends on if you want to move up or down in home value. If you are moving in home value up then you should buy before the housing market recovers.

Once the housing market recovers, if home prices increase by, for example, 10%, you would sell your $500k home for $550k but the $700k home you purchase would cost $770k. In this example that is a $20k net cost.

If you are downsizing, it is probably best if you wait to sell. Although, some lenders are promoting reverse mortgages. A reverse mortgage provides an income stream to finance the purchase of a new home. Your old home would then be rented until the market recovers and then sold thereafter. When the home is sold, mortgages can be paid off or refinanced.

Another factor to keep in mind is interest rates. If interest rates decrease
.5% then it is advantageous to lock in the decreased rate. So, don’t forget to watch interest rates and factor rates in to your decision to buy.

Q: We have been looking at many listings that are Short Sales. Can you tell us what a Short Sale is?

A: In a short sale, the lender is willing to sell a home for less money than is owed on the home. However, the lender is not required to accept your offer. In most instances short sales are anything but “short” and it usually takes longer to receive an acceptance on an offer than it would on a non-short sale listing. You may have to make many offers on multiple short sale listings before you get an acceptance and we are willing to assist you with this process.

If you decide to make an offer on a short sale, you should hire an agent who is experienced in short sale negotiations and transactions. Through a title company, your agent will be able to find out who is on the title, how much is money is owed on the home and if there is more than one mortgage. Your agent should also make sure your offer is made contingent upon your approval of a home inspection. We encourage you not waive your right to a home inspection. More often than not, a home listed as a short sale is sold “as is”. This usually means the lender will not pay for the repairs isolated by the inspection but at least you will know what you are getting into.

Q: We are planning on selling our home and our Termite Insurance will expire before the home is sold. Should we renew the Termite Insurance or let it lapse?

A: The buyers of your home will have a termite inspection performed before they purchase your home. If termites are found, the insurance company is usually responsible for rectifying the problem. This would take the burden of fixing the problem off of you.

Before you renew your contract, let the termite insurance company know that you are going to be selling your home and ask if the contract will be transferable to the new owners. If the termite insurance is transferable, this will add value to your home and make your home more appealing to potential buyers. In today’s competitive buyer’s real estate market, any extra bonus you can offer potential buyers will help sell your home.