Interest rates have reached an all time low given the recent efforts by Government to resuscitate a troubled economy. The Mortgage Industry is staying alive as the need for lower monthly payments and interest rates soar. Unemployment, foreclosures and bankrupt businesses keep coming out of the wood work and again the only one to save the day is the Real Estate Industry. Despite my own opinions about how the economy should be ran we have a crisis and what is important right now is to keep rates low and business flowing.
We are seeing now a slow increase in the rise of property values from the recent dive bomb in the market just a few short months ago. I do beleive we will make it out of this slump but with the huge deficit that has been building over the years and the decrease in value from the American Dollar. The road is going to be a rocky one. I beleive the only cure to getting this economy back to where it needs to be is to simplify our current process of spending and building revenue. I wont go into details because I am no politician for that matter, but this economy needs to get back to the fundamental basics of budgeting. Amercan people budget and balance their checkbooks. There is a limit to how much they can spend and so the Government should take heed to this same rule. Simplicity is best. However, Interest rates are low and now just starting to rise which gives a little hope to our predicament. On the other side, I hope that rates dont rise dramatically after this dramatic mark down.
My best advice to anyone is to refinance now into a 30 or 20 yr fix mortgage if you have an ARM product so that you can lock your rate for 20-30 years. If you have a first and second mortgage, simplify. Roll both your first and second into one easy loan. Rates are at their lowest and are just now rising. This is also a great time for the first time home buyer. Housing values are down so you can get a great price on your home and rates are at it's lowest. An added benefit is the $8k given to first time home buyers by our Government to stimulate Real Estate sales and help the first timer. This is a great time to take advantage of our poor economy. While it knows it's poor.
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