Ed's Blog

Recently, S&P Case-Shiller Home Price Index released a new report on home prices that ought to come as good news to home buyers. As of January of this year, home prices in the Bay area were down more than 30% from the same time last year. That puts median home prices at levels we haven’t seen since 2003!

If you’ve been waiting to buy a home, in hopes that prices will decline further, this news should nudge you to begin looking now. Of course there is always the possibility that prices will decline a bit more, but when you couple these low prices, with the ongoing incredibly low interest rates, it’s clear that this is phenomenal time to be a buyer!

Incidentally, although you’ve heard much about the “frozen” credit markets, with the new Housing Affordability and Stabilization Plan going into effect next week, we expect lending guidelines to loosen, thus beginning to “thaw” the frozen credit markets.

Give us a call today to start working on your pre-approval, and take advantage of this incredible time to be a home buyer. We can always be reached at 415-406-2330.

Those of us in the mortgage business know just how many incredible opportunities are being presented in this otherwise dismal economic climate. From opportunities to buy at insanely low prices, to interest rates not seen in decades, we know (because we’re immersed in the business day in and out) that it is unequivocally one of the best times in history to be a buyer. We also know that it’s a remarkable time to be a homeowner, as you can save thousands by refinancing into safe, old fashioned 30 year fixed loans.

But for all of our efforts to spread this word, no one has been more helpful than President Obama in getting the word out. Citing the fact that millions of people can save thousands by refinancing, and the fact that interest rates are dipping into ranges we haven’t seen since the 1970’s; President Obama has become our nation’s greatest de facto pitchman for mortgage refinancing! And for that, we should all thank him, for helping us to realize just how much money we can all be saving by refinancing our homes today.

Want to talk about refinancing your mortgage? Give us a call at 415-406-2330.

If there is a silver lining to be found behind this otherwise gloomy economic state, it’s that there are great deals to be found everywhere you look. From cars to houses, things have gotten much cheaper. And as a homeowner, that means your mortgage can get cheaper too. Here are the top ten reasons you should refinance now.

10. Interest Rates just don’t get any better than this. We’re talking in the 4-5% range!

9. Safe, government sponsored loans are available. The days of exotic, unaffordable mortgages are history! (For now anyway!)

8. Lack of equity isn’t much of a problem. With new incentives from the economic stimulus plan, lenders are willing to refinance even if you don’t have much equity.

7. You can be saving a lot over the life of a loan. You can literally save yourself tens of thousands of dollars in interest. Who couldn’t use an extra $15,000, $30,000, $60,000,

$120,000 or more over the life of your loan?

6. You could be saving a lot every month. Refinancing into a lower interest rate loan can save you hundreds of dollars each month. How about an extra $200 or $300 or more in

your pocket each month?

5. You can pay off your loan faster. Just because you refinance into a 30 year fixed loan doesn’t mean you can’t pay it off sooner. Just paying a bit extra towards your principal each month can shave years off of the life of your loan.

4. Lending guidelines are loosening up. Even if you tried to refinance six months ago, only to find that you weren’t able, you may be able to now. Major changes have taken place in the lending industry, and getting a loan is getting easier.

3. President Obama is even encouraging you to refinance. After all, maybe with the money you’ll save, you can put it back in the economy.

2. What do you have to lose? Nothing! You only stand to gain if you can reduce your interest rate.

1. There is no telling how long rates will stay this low! Interest rates change daily, even hourly, and there is never any guarantee they won’t start increasing again.