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Archive for the 'Mortgage Info' Category

Low Interest Rates + Low Prices= Perfect Steamboat Purchase

 We know that there are a lot of people waiting for prices to go down before they purchase. Here is an example of what increasing rates do to the cost of home ownership.

 Loan amount of $240,000 and a purchase price of $300,000 with 20% down

The principal and interest payment at 5% is $1,288.37.

If the rates increase to 5.5% the same payment ($1,288.37) would result in a loan amount of $226,910 or $13,000 less. With 20% down this is a purchase price of $283,635.

 If the rates increase to 6% the same payment ($1,288.37) would result in a loan amount of $214,890 or $25,110 less With 20% down this is a purchase price of $268,612.

(This is a purchase price drop of 10%)

“Man Pays Mortgage-On Time!” How ‘Bout that for a Headline?

Everywhere I go, I get asked “how’s the real estate market?”  Because this question is usually posed to me on a chairlift, in Starbucks, City Market or the Tug Boat,  I usually reply with what is happening in our market.   We all know that real estate is extremely local, but for a change (and because I am at my computer) I thought it best to share some interesting national stats.  The most vocal opinions regarding the national real estate market that one hears about on television and radio and reads on the Internet and in the print media seem to depict only negativity.  Below are facts which were obtained from the Wall Street Journal, Moody’s Economy.com, Realty Trac, NAR, and Forbes which are quite compelling.  I’ve discovered that there are many misconceptions believed by the “average” citizen who believes that there is even MORE doom and gloom than what  is being depicted in the media.   I do believe that more dissemination of statistics and info like the following is what’s needed to dispel the  “mental recession” that we have gripping Americans today.      

There are 76 million households in the U.S. that own their home of which 24 million have no mortgages (31%)

There are 52 million homes with mortgages of which 97.2% are not in foreclosure and 93.8% are current on their payments.

More than 1,000 banks closed in 1930-14 U.S. banks were taken over in 2008

Interest rates are at historic lows-which equal greater buying power

The new $8,000 tax credit is available for first time home buyers (those that have not owned a home in the past 3 years)

Feel better?

Here’s What’s New In Lending In Steamboat Springs…

I attended a Lender forum this morning at the Steamboat Springs Board Office. It was standing room only with the local Lender community at the helm. Of course there was good news and bad. The really good news is that there is plenty of money to lend with great interest rates and the bad…you need to have decent credit.   Here are some highlights of the USDA lending program available now.  I’ll be covering other programs in  subsequent posts. Read the rest of this entry »