The start of this year has been a roller coaster for interest rates... and a steep drop for housing prices...
The most common thing I have seen lately is friends and clients looking to refinance and take advantage of the lower interest rates, yet finding out their mortgage is the same or higher than their home value.
Many of these people have excellent credit, and can prove they are capable of making payments at 90, 95 and 100% financing.
However given the new lending standards, these loans are not available for them anymore, and they must wait until the home values rebound before they can make a change...
If this is the case for you, just hold on... and keep making your payments... things will turn around...
Much like our 401Ks that slid for sometime, yet we continued to contribute and watched them rebound...
Some reasons for the roller coaster:
1. The Fed cutting rates so quickly
2. Conforming loan limits changing
3. The bond market moving up and down quickly (this is the index that mortgage rates are based on)
4. The Dodgers poised to win the pennant... (Well they do have a new coaching staff and pitcher)
It is no wonder everyone is talking about the housing industry...
Now that conforming loan limits have increased, (Due to the signing of the U.S. Stimulus package that was signed into law back in February) look for interest rates to creep up as demand on loans increases... As well as the banks to keep the current 417K Conforming loan limit, and establish a new "Conforming Jumbo" that will come with a higher interest rate.
Now is a great time to take a good look at your real estate holdings, especially in regards to:
1. Home values
2. Loan amounts and programs
3. How much you pay for insurance, etc.
If you have not already done so, set a meeting with a Certified Mortgage Planner for your annual debt and equity review to see where you are and if you need to make a change.
Cezar Mansour is Certifed Mortgage Planner and President and owner of Beach Lending, and Clear Blue Realty in Redondo Beach, CA.
A real estate financing firm assisting people buy their first home, investment and or commercial property.
He is a the author of "The Official Guide to Building a Referral Based Business" available on Amazon.com
You may also contact Cezar directly at: Cezar@cezarmansour.com
Article Source: http://EzineArticles.com/?expert=Cezar_Mansour
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