Realtor & Mortgage Bailout!
Merry Christmas & Happy New Year!
While every other industry is getting some type of financial relief from the government, where is the bailout package for the Realtors and Mortgage companies? Believe it or not, it just came on December 16th 2008. By way of the Federal Reserve lowering rates to historic lows. Now we didn't get a pot-full of money, but we did get a way to help start putting money back in the pot!
Lately there has been talk about the 4.5% 30-year fixed rate mortgage. Will it become a reality? No one really knows, but it is looking much more likely that rates will go that low or even lower. You may have heard that these low rates would only benefit current buyers, and not
current home owners seeking to refinance. Because of this lowering, everyone may
benefit from the lowered rates.
The Fed lowered the discount rate to .25%, and had already announced that they were going to
buy up to $600 billion in mortgage-backed securities. So with all these positive moves, rates are headed down. But, in January, the SEC is meeting and information may be released that could have a significant bearing on rates, potentially for the worse. So how long will this last? No one knows, rates may go back up next week or next month. Don't delay! Let's make hay while the sun shines and take advantage of our current windfall.
Home loan rates are currently in the low-5%'s, and have started to head lower! Nationally, home values are currently at 2003-2004 levels, coming down from their highs. However, this is
not always what we are seeing in our local Dallas / Fort Worth Metroplex area.
Some local areas have lost values, while others have seen little to no loss.
If you have customers waiting for the best time, or for the market to hit bottom, this may be it. This is a great opportunity to call all your customers', present and past to let them know that today is a great time to sell and purchases another home. No one knows if this will last for 30 days, 6 months or even longer. Don't miss historical low rates! If you know anyone who is contemplating financing, now is the time to act. Let's get motivated to make those dreaded customer calls and get busy now! This is our bailout, it is here, we just have to work for it!
Don't forget, the first time home buyer tax credit of up to $7,500 and low down payment programs available for many people today. FHA is going to a 3.5% required down payment as of January 1st, 2009.
So, tell everyone you know that now is a great time to buy a home.
Get everyone you talk to pre-qualified as soon as possible. The best rates are only available to those with little to no credit problems. When rates are quoted, there maybe additional ''add-ons" that can cause the rate to go up. Working on your credit rating and getting customers
pre-qualified as soon as possible may help your customers get the lowest rate possible.
We can advise your customers on ways to help improve their credit scores, but we need
between 30-60 days. So it is important to get started before you have a contract written.
Call me today and let me help you!
Let's get those customers buying, and help them take
advantage of our industry's "Bailout"!
Have a Wonderful & Safe Holiday,
Rich Hebert
Lending Edge Mortgage
817-485-4155
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