You don’t have to be looking for a house if you want to take advantage of the plenitude of government programs that are reducing mortgage payments for thousands of home owners – if you seek a condo, you may benefit as well. All varieties of housing units are being constructed in quantities at a level that hasn’t been seen since last summer; you may not get a better chance at the market than right now. The Dallas-Fort Worth area’s housing market has been surprisingly robust; not only was it relatively unaffected by the housing crash compared to more expensive areas such as Miami, but it was bolstered by the job growths in the energy sector. Even during the worst parts of the recession, prices remained fairly stable.
No matter what income bracket you reside in, it is recommended that you thoroughly investigate the many federal assistance initiatives for various tax credits and restructuring programs. But even if you do not qualify you may still benefit from a looser credit market if you purchase a home or condo in the next few months. This is because mortgage companies will be more willing to lend money if they are sure their investment will be returned.
However, this may only apply for a few months more. Mortgage companies like Freddie Mac are anticipating a rise in mortgage rates, as well as housing/condominium pricing, as the economy recovers. This is especially true in Dallas-Fort Worth: according to the federal price index for the year of 2009, Dallas was one of three Top 10 US metropolitan areas that saw increases in prices. This index tracks both new homes and the appreciation of old homes. In a longitudinal study over the past five years, Dallas-Fort Worth prices rose 12% overall and there may be more growth in the future.
Realtors and economists alike are anticipating greater levels of activity in the market this year. While last year saw lukewarm activity, the figures are less dismal than might first appear. Real estate agents have reported that while fewer people choose to follow up and post their homes and condos for sale, the level of initial activity is as high as it has ever been. This means that while market participants are still waiting for the market to stabilize, interest in buying and selling is still there. The same desires that drive the property market forward: desires for a different climate, a different job in a new location, or finding a family-friendly neighborhood for a growing number of kids-these desires are building up a kind of economic tension which will be released in a burst of market activity and increased prices once it becomes clear that the market will recover. Start looking for your new condo now, before the spike hits in force, and you could save yourself a lot of money down the line on your mortgage. The internet has many resources available to help you find the condo that fits your living needs and your budget.
Tag-Archive for ◊ Mortgage Payments ◊
The recent announcement of President Obamas “Making Home Affordable” plan will allow millions of current homeowners the chance to refinance or modify their home loans into new 2% fixed rate mortgages. The savings, through interest alone, easily add up to hundreds of dollars per month. Here is how this $75 billion housing bailout plan works:
-Homeowners who have seen their home or property values drop by 15% or more as a result of this housing crisis, are in luck. Millions of homeowners who purchased their home in the past few years now are stuck with mortgages that are actually worth more than the home. Now, you will still be approved for a 2% fixed rate finance even if you owe up to 5% more than your home is actually worth.
-Homeowners who have been able to make every one of their mortgage payments on time and in full for the past 12 months, or longer, in a row, can now refinance into the Government backed fixed rate 2% home loan. All homeowners will qualify for this refinancing part of the “Making Home Affordable” plan as long as you have not been late or missed any payments.
-”Financial Hardships” such job loss, income loss or reduction, hospital bills or tuition payments, high interest debts, or a whole list of other things will help a homeowner qualify and be approved for a home loan modification. This loan modification will allow homeowners who have missed or been late on a few mortgage payments and are struggling financially. Include a handwritten letter stating your “Financial Hardships” and hand sign it. Attach this letter to your loan application for a 2% fixed rate, government backed, home mortgage loan modification.
-A homeowner who is lucky enough to have a mortgage financed or backed from Freddie Mac or Fannie Mae will be automatically eligible, regardless of your financial situation, for a 2% home loan refinance or modification. This is possible, again, because of President Obama’s and the Federal Governments “Making Home Affordable” plan.
By taking advantage of this great time for refinancing or loan modification, a homeowner can easily save hundreds of dollars every single month, in interest savings alone. This easily adds up, in most cases, to tens of thousands of dollars in savings over the course of the mortgage, which is usually 30 years. Homeowners who are having financial problems, or think there mortgage payments are too high and they could do better, should look into the potential savings refinancing or modification of your home loan are. Odds are, especially using this “Making Home Affordable” plan, you will qualify for a much better home mortgage than you have now.