Lowest Mortgage Rates Since 1950's

Lowest Mortgage Rates Since 1950's

The last time borrowers could get rates this low, every television was black and white. American's liked Ike. Thirty-year fixed mortgages dropped to 4.27% this wee. Freddie Mac also reported the 5 yr adjustable rate mortgage fell to 3.47%, and the 1 yr adjustable rate dropped to 3.4%. Buyers should take advantage of the current mortgage rate environment.

Buzz words with mortgage financing

Here are somethings to consider when thinking of buying a home.
Learn & Follow the 3Cs.
Location may be the buzz word in real estate, but capacity, character and collateral are the buzz words with mortgage financing.


Capacity - your financial ability to repay your loan;
Character - an examination of your credit history and history in paying previous debts; and
Collateral - the value of the home must appraise for at least the amount of the loan.
I highly recommend that you talk to your local bank to see where you are with the 3 C's before you go home shopping

Should I buy a house today?

Should I buy a house today?
A Home Is a Better Place to Raise a Family

Don’t take my word on this. When Fannie Mae asked current renters for the major reason to buy a house in their National Housing Survey 2010, these were the answers renters gave (they could pick multiple answers):

* 78% said it was a good place to raise children
* 75% said because they would feel safe
* 70% said because you have control of your own space

With interest rates under 4.5% you can own some homes for less than renting. Call me today and see how you can become a home owner.

Do you have cash reserves?

Cash Reserves

Buyers, when you apply for a mortgage loan, the lender is going to request your bank account information. They will check again just a few days before your closing date. They want to know how much money you have in the bank, and whether or not you can afford your closing costs. They also want to make sure you have enough to cover your first couple of mortgage payments. This is referred to as “cash reserves.” The amount needed will vary based on lender and loan program. Just know that the lender is going to scrutinize your liquid assets.

Save up for your home-buying

Saving, Why is this so important? Here is good reason to save up for your home-buying process:

1. Down Payment

When you buy a home, you’ll have to make a down payment of some kind. The days of “no money down” ended when our economy collapsed. Almost 100% of lenders today will require you to put some money down. The amount needed will vary, based on the type of loan you are using. With an FHA home loan, you can put as little as 3.5% down. With a conventional mortgage (one that’s not backed by the government), you’ll need to put even more money down. Many buyers aim for a 20% down payment, to avoid paying private mortgage insurance.

Why can't I buy a home?

First-time home buyers are often surprised by the total costs associated with buying a home. Some buyers don’t even realize that a lack of cash reserves can hurt their chances of getting a loan. But it happens all the time. In fact, a lack of up-front cash is one of the most common reasons for mortgage rejection. That’s why it’s important for future home buyers to start saving money early on.

Ready, Set, Buy your first home. Step 1.

The first step: figuring out whether you are ready to own a home. This does not only mean that you are financially capable of owning a home. It also includes emotional readiness, as buying a first home is a huge step for most people, as well as a huge commitment and responsibility.

One of the easiest and most valuable things you can do to prepare is obtaining a copy of your credit report and making sure that lenders will like what they see. The Web site, ConsumerInfo.com, offers this service for free, as do many other sites. If your credit report is less than stellar, it is probably a better idea to continue renting while you pay off debts and investigate questionable problems.

Home buyer Tip #3 How much home can I afford?

Aim for a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford. I have links on my web site at www.greencountyhomeguide.com

Don't buy if you can't stay put. First-time Homeowners advice.

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Don't buy if you can't stay put.

If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner - even in a rising market. When prices are falling, it's an even worse proposition. Make sure you discuss your plans with your Realtor so he or she can give you sound advice on this your biggest life-time purchase.

As the song goes " Time keeps on ticking, ticking in to the future"

As the song goes " Time keeps on ticking, ticking in to the future"

The first time home buyer tax credit allows a buyer to enter an agreement with a seller by April 30, 2010 and close on the house by June 30, 2010. First time home buyers are defined as anyone who has not owned a home for the past 3 years. First time home buyers will get up to $8,000 tax credit. Other home buyers, who have owned their current home for at least five years, are eligible for a $6,500 tax credit.

Income limitations $125,000 for single filers and $225,000 for joint filers. The purchase price of the home must be less than $800,000.



There it is, the clock is nearly striking midnight on this fantastic offer for first time home buyers. It is still possible but you must get an accepted offer on the home you want within 10 days.

From Scott Larson of Towne Square Realty in Monroe, Wisconsin

“Your Realtor of the Region”

E- Mail scott@greencountyhomeguide.com

On the web at www.greencountyhomeguide.com

I think you will be surprised how affordable the Dairyland is,

so come to my land of cows and plows and visit for a day, but stay for a lifetime

608-2124-9844 Direct