Are Interest Rates Going Up? Should I buy now?

It's a great time to buy and a great time to get a home mortgage loan at great rates. .

Thinking of buying a home? Interest rates are not likely to get any lower than they are today. In fact, it is likely in the near future that they will go up. Why?

The Federal Government agreed to buy mortgage backed securities. By doing so, they are essentially keeping mortgage rates artificially low. They are due to stop this program soon, possibly as early as this Spring. What does that mean?

Basically without the Federal government buying these securities, who is going to buy them? Usually it's investors. And, while the government is willing to take a lower interest rate, most investors are not, hence rates will go up.

What does this mean to you? If you are thinking of buying a home, your purchasing power is greater with a lower interest rate. For instance, a $100,000 mortgage loan at 5.5% is
$568 /month over 30 years. At 6.5%, it jumps to $632 /month. For many people that will be the difference between qualifying or not qualifying, between buying the house you want or buying a less expensive home.

Couple all that with the First Time Home Buyer or General Home Buyer Tax Credits and it won't get any better than this. So, if you are thinking of buying, now is the time. Interest rates are low, prices are great and there are many motivated sellers (you have to be under contract by the end of April, 2010).

If you are a First Time Homebuyer, let us know your mailing address and we'll be happy to send you a FREE First Time HomebUyer Booklet which outlines the process. Plus we have another brochure about Buying versus Renting.

One of your first steps may be to get Pre-Qualified. Coldwell Banker Mortgage is offering a unique program where they offer you pre-purchase rate protection. The great thing about this program is that you can lock in when you start looking rather than waiting until you find something (your rate cannot be locked until you are under contract). Here's how it works:

Our Four to the Door mortgage program gives them an effective way to limit rate risk. At the start of our simple four-step process, you simply tell the lender that they want Pre-Purchase Rate Protection. Depending on where interest rates are, their rate will be capped at a certain level— and whatever happens to rates, you won’t pay more than that cap. On the other hand, if rates go down in the meantime they can still benefit: we offer a one-time “float down” — an opportunity to lock at a lower rate before closing. So whichever way interest rates go, you are protected.

Call or email us today. My Team and I would be happy to help in the great Austin and Highland Lakes areas including Marble Falls, Burnet and Horseshoe Bay areas. We belong to both the Austin and the Highland Lakes MLS systems.

Good Luck!

Sue Ellett, Broker-Associate
Paragon Property Group Team
Coldwell Banker United, Realtors
866-693-7741
suemellett@yahoo.com
www.ParagonPropertyGroup.com

Special Loan Programs -Homes For Heros - Texas

There are a lot of special home buyer programs in the State of Texas including some called "Homes for Heroes". These programs are for full-time Teachers & other Education Professionals, including: Classroom teacher * Teacher's aide * School librarian * School counselor * School nurse * Professional Nursing Program Faculty member * Allied Health Program Faculty member

Also included in the program are other full-time community professionals employed in the State of Texas such as:
Paid Firefighter * Emergency Medical Services Personnel * Peace Officer * Corrections Officer * Juvenile Corrections Officer * County Jailer * Public Security Officer

One available program is the "Good Neighbor Next Door" where these professionals can purchase HUD homes for 50% off!

Other programs offer reduced interest rates and down payment assistance. Contact us for more information about these and other first time buyer programs (also eligible if you have not owned a home in the last 3 years).

These programs are available thru the Texas State Affordable Housing Corporation (TSAHC).

Sue Ellett
sue@texasfirsthomebuyer.com
512-422-7182