I have a client telling me that the Fed is working against home sales by artificially holding interest rates down. That people feel like they have at least two more years to watch housing, at least until mid-2013, which is the current apparent horizon of low interest rate projections from the Fed.
He says (actually, it was his very intelligent wife whom he quoted with full admiration and attribution), “Why feel urgency to borrow now, when we are clearly told that rates are going nowhere, and prices are feeble.”
Hard to argue with. So, the Fed has drained urgency out of the housing market; the National Association of REALTORS® and REALTOR® members support that effort, and then in a disconnect, they work themselves into a lather with educational sessions and programs and seminars to learn how to “Create Buyer Urgency!” Well, I have been hearing for 5 years that rates are going to go up. And the Fed tells me I will likely hear it for a couple more years, as we witness ongoing record low mortgage rates.
And I am supposed to look like a goon and twist arms to “Create Buyer Urgency” because rates will go up?
Nope. Not me. If you are ready to buy a house, give me a call. If not, think your way through it, and I will be around when you ARE ready. No pressure. No hassle.
Maybe instead of another silly 1st time buyers boondoggle, the Fed should just give us a road map plotting how and when rates will escalate. It just might shake some money loose and get it into circulation.
What is the real cost of your Home Loan? You have to consider more than just the interest rate you were quoted. Consider all the fees and charges to get the money for your new home, and you will see that the actual Annual Percentage Rate is nearly always higher than the interest rate you were quoted.
Even better, when we find that new home in Cary, let me connect you with a great mortgage professional who will explain APR in detail for you, and deliver that affordable home loan package than best fits your needs.
Until then, Calcmoolator gave me a nice free calculator to help you make an educated guess at your APR:
Calculate how much mortgage you can handle with Mike’s Mortgage Calculator.
Affordable Mortgage Calculator
I picked up this Mortgage Affordability Calculator from Calcmoolator. It is informal, but can help folks have a little fun comparing their finances to home costs, and to determine if affordable home ownership is feasible for them. Users should adjust taxes and insurance to reflect something closer to market value in Cary.
A listing agent or Seller will not accept these results as proof that a Buyer can afford a home. And a Buyers agent should not think a quick calculation like this is proof that the buyer can afford a home. The calculator is not a substitute for a prequalification session or a mortgage preapproval letter from a lender, but it can help folks gain some focus on some of the issues in home lending. Of course, if you want to step directly into working with a great mortgage banker, I always recommend Kevin Martini of SunTrust Mortgage.
This mortgage calculator, from the good folks at CalcMoolator can be a big help to you in planning your finances, and knowing what it will take to buy that Cary home. As a Buyers Agent, I see many real estate buyers who haven’t yet talked to a lender, and have no idea how affordable their home payment may be. Please note, your Wake County Property Tax and Homeowners’ Insurance premium included in the total estimated mortgage payment will vary depending on your property value and which Wake County town you are in.
Also, I expect to offer several more specialized real estate calculators on this page, so check back to see what’s new.
60 Second mortgage program conversation with Kevin Martini, SunTrust Mortgage.
I grabbed my friend and mortgage money mentor, Kevin Martini of SunTrust Mortgage, and asked him a few rapid-fire questions in the Cary NC, KELLER WILLIAMS® real estate office the other day. Kevin is a favorite of local Buyers agents and listing agents, because he delivers.
Kevin tells me that he has a huge variety of affordable home loan programs to help folks buy, and, of course, he is tickled with current interest rates he can offer.
The Federal Trade Commission has handed down new regulations regarding mortgage modification services for distressed homeowners.
This is due to a wide variety of unfortunate scams wherein operators took money, promising mortagage modifications, and then did not deliver.
Now, mortgage modification service providers cannot expect a fee until the lender has agreed to a mortgage modification that is also agreeable to the homeowner.
It seems to me that the FTC has this one right, as folks who are under water on their mortgage obligation have enough issues without being whacked for a fee with no service rendered. Read the FTC Bulletin.