Archive for September, 2009

The passing of time

September 18, 2009

Time.  Where does it go? We never seem to have enough of it… We typically wonder if the time is “right”… and for some of us, time is beginning to run out.

Tax credit for first time home buyers – In order to qualify for the $8,000 tax credit, the home must be purchased before December 1, 2009 – which means November 30th. 

You may be thinking “there is still plenty of time.” While there are still 10 weeks remaining, if you haven’t started the process, it’s enough time, but not a lot of time to spare.

Think about it… You’ll need to find a realtor. Then find the time to start looking at homes for sale. After looking at several homes, you’ll make an offer AND wait for the offer to be accepted.  Then you will need to apply and get approved for a loan.  Finally, after all of that, you are ready to buy the home.

Typically the entire process can take somewhere between 6-8 weeks.  Whew, two weeks to spare! However, remember there is a major holiday that will limit the number of closing times available at the end of November. 

Oh, don’t forget about fence sitters who will make the move to buy a home.  Now all of the sudden realtors are busier than normal, closing attorneys are booked, and lender underwriting times may be longer than normal.

The moral of the story – plan on closing at the beginning or middle of November to be sure not to miss out on the tax credit.

Refinancing a home – Rates are at historical lows.  As of this post, a 30 year fixed rate is under 5% and a 15 year fixed rate is in the low 4’s.  That being said, rates won’t stay there forever.  Don’t believe me? Remember late May of this year when rates went from the mid 4’s to almost 6% in about two weeks?

I don’t know when rates will go up, but they will at some point.  If you are thinking about refinancing your home, let’s talk now and see if it makes sense so you don’t miss out.

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Time… we never seem to have enough of it and wonder if it is the “right” time.  If you are looking to buy a home and get the tax credit OR refinance your existing home, now is the time! I’d enjoy the opportunity to speak with you about your options.

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Finally, bonds have come back…

September 2, 2009

… and passed the 200 day moving average pushing rates below 5%!

August saw bonds slowly and continually climb back toward the 200 day moving average.  This caused rates to drop down to 5%, but rates didn’t improve much beyond that point.  Why? – because we were still on the wrong side of the 200 day.

Finally, after weeks of trying, bond prices pushed through the 200 day moving average and rest above this crucial level.  The result? – mortgage rates are back in the 4’s!

Where do we go from here? We could see some sub 5% rates for the near future due to a couple of factors.  First, the continued release of poor to just plain bad economic reports shows the economy is not completely back on its feet.  Second, the poor economic reports have caused money to flow out of stocks and back into bonds.

Investors are wary and wonder if the stock recovery we’ve seen over the last several months is a real recovery OR simply inflated by all the government money poured into buying bank stocks thus artificially increasing their values.  No one knows for sure, which is why we are seeing a more cautious approach to investing.

One thing we do know for sure is rates in the 4’s won’t hang around forever. If you missed it the first time, let’s get started today so you don’t miss out on this chance to refinance with these historically low interest rates.

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