Readers Ask Real Estate questions

Dear Sue,

I heard that interest rates for a 30 year fixed rate loan were below 6%. Is it true?

Ready Rex

Dear Rex,

Yes! Interest rates are well below 6% In fact they are between 5-51/2%. If you plan on living in your home for 10 years or more, it will pay to buy the interest rate down to 4-41/2%.

We haven’t seen rates like these in years!

Dear Sue,

Has there ever been a time in history when a real estate agent said that it wasn’t a good time to buy?? I think buyers should wait until we have reached the bottom of the market!

Curious Cal

Dear Cal,

Absolutely! I would discourage any buyer today if his/her intention was to buy a property in order to flip it for a quick profit. Those days are over.

Well-heeled investors and homebuyers that look at their purchase as a long-term investment are the only ones who should be shopping right now.

It’s impossible to time the bottom of any market. Unfortunately, the only view of it is in the rear view mirror!

Dear Sue,

Do you think now is a good time for a first time buyer to buy a home? If so, why?

First time Mike

Dear Mike,

Now is a great time!

The interest rates are unbelievably low! The Fed’s are talking about lowering the rate further to 41/2%! (Not available for refinancing)

If you buy a foreclosure the Fed’s will give you $7500.00. It is an interest free loan. There’s currently talk about making the $7500.00 a gift.

It seems like the government is proposing or introducing enticing incentives on a daily basis!

Today’s current inventory of homes gives you plenty to choose from. If you are out-bid on one there are more opportunities right around the corner.

The tax write-off add to the returns on a real estate investment. The government is actually helping you with your purchase through the interest and other deductions.

Dear Sue,

I heard that lenders were giving homeowners the benefits of a short sale if they could get refinancing. In other words, an upside down homeowner doesn’t have to sell his home in a short sale. The lender will actually allow the homeowner to refinance through another lender at the new appraised value, which is less than what is owed.

Do you know anything about this?

Agent Jo

Dear Jo,

What you’re talking about is a “short refinance”. The nice thing about this solution is that the homeowner gets to keep their home. There is no foreclosure or short sale to another buyer. The lender has more control over how much principal is lost.

This solution is good for all parties. I would recommend that short sale negotiators make a “short refinance” their first option. It’s a matter of good home dollars and sense!