The Planets Are Aligned
May 3, 2009 Leave a comment
Image courtesy of Flickr
If you take a moment and peer up into the sky you will actually see that we are at the crossroads of a real estate buying opportunity like we haven’t seen in my lifetime. All the factors that go into making a real estate buying decision are perfectly configured. But like most perfect planetary alignments, clouds and precipitation sometime make it difficult to see this truly amazing sight and before you know it, the moment has passed. The four planets that I see aligning are as follows:
1. Mortgage Financing - If you’re like most people, you will need a mortgage to assist you in purchasing a home. Interest rates right now are the lowest that they have been in decades (see ‘Mortgage Info’ tab). When I first got into the real estate business over twenty-five years ago, the 30 year fixed rate was about 17% (this is not a misprint). To put that in easier terms to understand, a principal and interest payment on a $150,000 mortgage then was $2,138 – - – now $805. Hopefully, President Obama’s programs and endeavors will start to have some positive effects on the economic growth in this country. When that happens and consumer spending starts to pick up, what do you think will happen to interest rates? I was not an Economics major in college, but even I can figure out that rates will tick up because of inflationary fears. So if you have good credit, money to work with and an income that can be verified, there has never been a better time to get a mortgage.
