December 19th, 2008 7:55 PM by Michael Reen
CONTINUED GOOD NEWS - MORTGAGE RATES ARE DROPPING!
By now I'm sure you've heard the stories about low, low rates. And they are low! Before I get into the good news, let me tell that there are many caveats. For example, loan amounts over $625,500 haven't benefited from these low rates. Loan amounts over $417,000 and less than $625,500 with cash out have rates much higher than you're reading about. (Cash out can include paying off a second or a line of credit even if you're not getting any cash in hand.) Cash out under $417,000 also has a "hit to rate", but at least it's not too bad. Likewise, credit scores under 740, self employed status, and a variety of other factors can impact the advertised rates. And you will pay a bit of a premium for loans with no points.Now the good news! Rates for many of you will be great. Some of you will try to pay points and who meet all other guidelines will be able to get an interest rate around 5%. Excellent!If you would like to have us check up on your loan and what might be possible give us a call at 408-626-1879 or send an email to me at michele@reenteam.com.
Here's hoping we can save you a sleighload of money to start the New Year off right!
AND HOME PRICES ARE RISING IN SOME HARD HIT MARKETS!One other bit of good news out there! Home sales in the hardest hit areas showed a third straight month of very strong sales activity. And in some markets, prices have started to rise. (One of our appraisers reports a 20% increase in the last few months in parts of Eastern Contra Costa County.) I've been saying for the last few months that now is a good time to buy in those markets and the numbers are bearing that out. Let me know if you'd like to pick up a bargain rental house in one of these markets, or invest with us in one or more. This is truly one of the great opportunities for investment.
HAVE A WONDERFUL HOLIDAY SEASON!With Christmas, Hanukah, Kwanzaa, and the Solstice right around the corner, I'd like to wish you all the best for The Holiday Season and a very Happy Healthy New Year!