Posted on Sunday, November 7th, 2010 at 11:48 pm.
The Federal Reserve today announced its intention to purchase $600 Billion of 3 to 10 year treasury bonds between now and June 2011. Some of you may be wondering how the Federal Reserve purchasing US treasury bonds can do much..aren’t we just borrowing more money to buy U.S. Debt? The answer is no, the Federal Reserve actually just prints money to purchase these bonds, so they are not borrowing it. Don’t you feel better? The last time this type of monetary policy was used in bulk was during the late 70’s Carter administration when interest rates jumped to 21%. The Federal Reserve printing money is inflationary by nature…so the Fed apparently isn’t concerned with inflation and there are hints that the Obama administration may be lobbying for this type of inflationary policy to try and spur demand the old fashioned way…..just like the Carter administration did!
Now, how much is too much? The Fed doesn’t seem to ever get that right so a justified amount of fear is probably prudent. However, the Fed out competing to buy US debt means that there is more competition for US Mortgage Debt so interest rates are going to WIN BIG in this environment so get ready to BUY or REFINANCE with 30 years rates close or at 4.0%! That’s right, 4.0% or darn close to it is a possibility! You need to be ready to LOCK THOSE RATES so give us a call today and we’ll get your mortgage application started!
Helping our client’s get the best rate on their mortgage, or refinance without adding a bunch of unnecessary fees to your existing loan balance is how we add value to our clients and keep them for life. We’ll help you design the best mortgage program for you and give you all the options so you can choose what’s best for you, not what’s best for your mortgage broker. Check out our mortgage page today and start your loan application online if you want!
Posted on Monday, August 9th, 2010 at 9:06 pm.
The continued decline in mortgage rates this month is creating new opportunities for purchasers to help themselves in the long term like never before. Currently, mortgage rates for FHA loans (loans commonly used by 1st time buyers or others with limited down payment funds) are hovering around 4.25% for a 30 year fixed rate loan. Just for comparison, last year that same rate was almost 6.0%. Historically, any rate under 6.0% is considered very good so 4.25% is simply amazing. So you say that you don’t plan on staying in your next home for 30 years? If you get an FHA loan it’s assumable by the next purchaser which means they will be willing to pay you more for your home for the right to steal a loan at 4.25% when current rates are more like 7%.
What does this mean to the average home buyer? The total amount of interest that you would pay on a $225,000 loan at 6.0% is $260,636 but that very same loan at 4.25% would only have total interest charged of $173,469. That’s a whopping $87,167 less in interest which is equivalent to not making over 5 years of payments on the loan at 6.0%. For those of you that didn’t take advantage of the $8,000 federal tax credit, don’t worry. The savings on your interest rate is equivalent to receiving the $8,000 tax credit more than 10 times over the next 30 years.
Finally, realize that because of the expiration of the $8,000 tax credit, buyers are in control of the market today like never before which means it’s possible to get a really good deal on a home and pay hundreds of dollars less per month for that same home than you would have a year ago.
Don’t let this opportunity pass you by! It is really a once in a lifetime opportunity. You can attend a free Home Buyer Workshop class in August or September to learn more but don’t delay because these super low rates could go away at any moment. If there was ever a time to get off your rear and check out the housing market, NOW IS THE TIME. For registration check out www.HBWDenver.com.
Posted on Monday, May 17th, 2010 at 4:50 pm.
Stix & Stones Fine Colorado Properties is pleased to announce it’s partnership with DownPaymentRegistry.com Colorado’s new Down Payment Registry Program. This program provides a way for newly engaged or married couples to save for the down payment on their home through a structured program that provides the first time home buyer with the education and assistance they need to be successful. Free programs such as the Home Buyer Workshop give these couples the chance to save money for the purchase of a home and learn about the home buying process.
If you know of someone who might be interested in this program, they can go to www.DownPaymentRegistry.com for more information.
