Click on the link above to read a recent article sent to us by one of the most saavy, reliable and productive mortgage professionals that we know. This real estate related advice could save youa lot of money by acting now! Markets are Unforgiving The last two weeks of May showed just how unforgiving the markets can be for people who choose to procrastinate. In just five days, interest rates from many lenders increased anywhere from .50% to 1.00% as fixed-income investors demanded more for their money.
For anyone who was waiting for prices to drop even more: a 1.00% increase in interest rate would increase monthly principal and interest payment on a home more than you would save if the price of that same home falls an additional 10% in value.
If you are waiting for prices to fall even lower, be aware that while holding out for a lower price may help them win the battle, they could lose the war in terms of monthly payments and overall affordability. With the Federal Reserve scheduled to end its buying of mortgage-backed securities this year, rates only stand to go higher for those that wait. In fact, interest rates are already on the rise and could go much higher from here.
Take a look at the 30 year mortgage rate trend further down the page to see how mortgage rates have been on the rise the past few weeks! Want to save some money? Call us today!
Isn't it great to be able to bring a little sunshine into someone's life?
Mortgage-Bond Yields Climb as Cycle With Treasuries Returns:
By Jody Shenn
June 1 (Bloomberg) -- Yields on Fannie Mae and Freddie Mac mortgage bonds soared, likely pushing up interest rates on new home loans after soaring last month and adding to the hurdles for a recovery in the housing market and economy.
Rising home-loan rates are helping to fuel a cycle where they continue to climb as mortgage-bond investors sell Treasuries to hedge and rebalance their portfolios, according to Chris Ahrens, head interest-rate strategist at UBS Securities LLC in Stamford, Connecticut.
So much of this has to do with whats going on with mortgage portfolios, Ahrens, whose bank is one of 16 primary dealers required to bid in Treasury auctions, said in a telephone interview today. The tail of the dog is mortgages and thats driving rates higher.
Going back over the past 3 years I noticed that the 30 year mortgage rates were stuck in the 5.5% to 6.5% range - considered by the experts to very inviting... and seem to have bottomed out between 4.75 and 5% during April and May of 2009.
Now the rate is is back up over 5% - approaching 5-1/4%! If you wish to check out the rates in the Beaufort/Hilton Head area, please call Mike Platt, mortgage loan officer with South Carolina Bank & Trust at 843-342-1958 (direct line). Not only has he managed to supply our clients with the lowest rates around, he somehow manages to get those loans closed in today's difficult lending environment!
The Fed has pushed mortgage rates still lower by beginning to pump money into mortgage-backed securities. But keep an eye on Treasury yields as any increase from these ultra-low levels could counteract some of the Fed's efforts, and mortgage rates could begin to rise once again. THIS IS NOW HAPPENING!
Despite high inventories and declining home prices, the Federal Housing Finance Agency (FHFA) announced that the conforming loan limit will remain $417,000 for 2009 for most areas in the U.S. but specified higher limits in certain cities and counties. The conforming loan limit is the maximum size of loans that Fannie Mae and Freddie Mac can purchase in 2009.
Translated simply, a jumbo mortgage loan amount for 2009 will be a mortgage that exceeds $417,000 in the Beaufort County region.
With todays tighter lending standards, please bear in mind the following:
With a purchase price of $521,250 and a 20% down payment, the loan amount would be $417,000 and within conforming loan limits.
With a purchase price of $463,333 and a 10% down payment, the loan amount would be $417,000 and within conforming loan limits.
Rates for these non-Jumbo loans are still extremely low, and coupled with reduced asking prices, this could be a great time for you to buy.
If you are planning the purchase of a coastal property, keep the figures mentioned above in mind... it could save you a considerable amount in monthly payments!
Housing in the U.S. is now more affordable than it has been since the early '70s.
There is one thing that we have learned in our many years in the real estate business - there are a lot of factors to consider other than "a hot price", "a buyer's market", or "a great mortgage rate".
We ran across this very well written article that gives prospective puchasers 10 very important questions to answer before leaping into what might appear to be a "hot deal". Just click on the link above to take you to the article... we know that you will enjoy this valuable information!
Do you have a property for sale on Fripp or Harbor Island? This housing slump has been protracted, and some would-be sellers are getting anxious! Our market continues to exert downward pressure on prices, but if you know how to handle the situation in a buyers market you can still manage to bring about a sale and accomplish your objectives. Click on the link below for assistance on how to realize your goals in todays real estate market.
Seller's Gems of Wisdom for Today's Real Estate Market. Did you know that investment real estate can be held in your Self Directed IRA as another form of tax-sheltered retirement investment? If you are contemplating investing in real estate, we have added an Investor's Corner. page containing many hints and other useful information to help you succeed in your endeavors. We include this material because we have found through experience that investing in coastal vacation properties is very different than investing in normal residential rental properties.
Beaufort County real estate is broken up into two main areas - the Beaufort area north of the Broad River, and the Hilton Head Island/Bluffton area to the South.
We specialize in properties on Fripp Island and Harbor Island, which are Barrier Islands located a few miles east of Beaufort. We supply you with links to all available MLS listed properties from our Fripp and Harbor Island home pages. You can search for other properties in the Beaufort area by searching the Beaufort Area MLS System.
For more information on your selected properties, or to make arrangements to view them, please Contact us.
Remember:Fripp Island and Harbor Island are private, guard-gated communities closed to the general public, as are many of the "plantaion communities" through-out Beaufort County.
Please let us make the proper arrangements to enable you to visit the properties of your choice!
Buyer/Seller Tips: Read through helpful tips of information on buying or selling your home!
Rick & Kerry Friesen - your Fripp Island & Harbor Island area Specialists Year-Round Fripp Island Residents since 1998 Providing over 50 years of friendly, professional marketing & sales experience. Is a real estate purchase in your future? We provide buyer representation!
Rick & Kerry Friesen are the owners and Rick is the Broker in Charge of Fripp Virtual Realty, Inc. 1551, Ste. 202, Sea Island Parkway St. Helena Island, SC 29920
Residence: 352 Blue Gill Road Fripp Island, SC 29920 Direct (toll free) 800-875-2052 Rick (Cell): (843) 597-5356 Kerry (Cell): (843) 575-0719
The information given on this website is supplied by third parties, most of them considered to be reliable. But it is the readers responsibility to verify all information prior to taking any actions relating thereto.
RICK & KERRY FRIESEN: Rick: 843-597-5356 - Kerry : 843-575-0719
