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2010.05.31 | 10:00:00
Get ‘Em While They’re Hot—Mortgage Rates Plummet AGAIN? |
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 That’s right folks; real estate agents and sellers throughout the country are jumping for joy because fixed rates have hit the lowest point this year. Freddie Mac released data on Thursday, May 27, 2010, announcing that the 30-year fixed product now hovers at 4.78%, down from (the already low) 4.84%. The 15-year product fell to 4.21% (for current rates through AmeriFirst, be sure to contact one of our mortgage experts). Why the fall? The European debt crisis and rollercoaster stock market can take most of the credit. According to Bankrate senior financial analyst, Greg McBride, prospective buyers should move in for the kill now because once the market stabilizes rates will creep up once again. According to industry experts, when (if) the economy starts showing some improvement, rates are likely to start heading back up. But, if you are waiting for the market to bottom-out and time the lowest rate, that’s not always the best strategy. Before you know it, rates could be headed back the other way and you’ve missed the boat. Another reason now is the best time to buy is that most of your competition has already purchased a house. With the rush of new home applications before the April home buyer tax deadline, the majority of buyers have already purchased a home. The beauty of lower rates is that although you may have missed the deadline for the tax break, the lower rate probably makes up for what you may have missed. Before you go racing out the door, consider visiting AmeriFirst before you go house hunting. Our qualified loan experts can help you identify an ideal price range and loan to accommodate your financial needs. Plus our loan officer can pre-qualify you so you can shop with confidence. Getting pre-qualified is also a good idea because let’s be honest…you won’t be the only buyer in town. If it comes down to your bid versus someone else’s most sellers consider the bid that has “pre-qualified” attached to it. Call us today at 800-466-5626 or complete our easy online application form. Sources:
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2010.05.20 | 10:00:00
The Rich Don’t Fear the “Repo Man” |
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One thing this recession has done was rip the mask off of artificially inflated wealth and expose the underbelly of what people are really made of. While the average American continues to struggle to put food on the table and lights on at night, even the uber-rich are feeling the squeeze. Not feeling a tear well up in your eye? According to a segment feature on The Today Show called, “The Party’s Over,” the “rich” or people who got rich quick from the mortgage boom several years ago are seeing their toys disappear quicker than Augustus Gloop in Willy Wonka’s chocolate river. The Wall Street Journal profiled several prominent high end repo men in a March 20 article and discussed the massive amount of wealth and gluttony these agents encounter. One repo man claims to have reposed an $18,000 Gulfstream jets and 110 foot yachts anchored in one of the hotbeds of fake wealth—South Florida. One highly sought repo man says that 70% of the items he has to repossess come from people who lost money as a result from the real estate meltdown. This includes developers, builders, real estate agents and contractors. Banks seek high end repo services to not only reclaim the property, but also to make repairs and spruce up the item so it is presentable for resale. The Wall Street Journal interviewed busy repo man, Ken Cage who said that many of his rich targets don’t meet and greet him with the level of violence as he encountered with other targets. He says that jets and yachts are easier to track and obtain thanks to the FAA and marine records. He also relies upon his network of marine captains, dock workers and aircraft pilots to help him obtain toys. It’s not all “roses and sunshine” in the land of repos, Cage says. He’s been chased with shovels and even in a speedboat. Cage also says that work is extremely depressing. "Here we were, taking minivans with child seats in the back, or going to someone's job to take their car," he says. "I had a tough time with that." In the end, these repos are just part of the market correcting itself. Another lesson in money management and not borrowing more than you can afford. Even the rich got caught up in the hype and are seeing their “prizes” dwindle. AmeriFirst customers don’t have to look over their shoulders for the repo man. That’s because we have always scrutinized every loan and agonized over every detail to ensure that foreclosure or default does not enter the picture. Sure, some of our customers have fallen on hard times as a result of the recession…we’ve all been touched by tough times. However, we don’t have to keep a repo man in our back pocket to reclaim items that our customers can’t afford. Our lending standards have always, and continue to be solid and we stand by our customers as we navigate our way out of the Great Recession.
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2010.05.17 | 08:42:51
Home Ownership Opportunities Abound! |
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If there’s one thing you can take from today’s blog is that now is the time to jump on a myriad of opportunities. When was the last time you saw a housing market like this? The stars, moons, planets and the Fed have aligned to provide investors with ripe opportunities to purchase properties at the lowest rates we’ve seen in years. Take it from BET (Black Entertainment Television) founder billionaire, Robert L. Johnson. He was recently interviewed in Money Magazine about the best advice he was ever given. Johnson recalls when John Malone (an early BET investor and now chairman of Liberty Media) told him that the best way to run a business was to “keep your revenues up and your costs down.” How does this relate to home buying? Because Johnson’s advice is to “focus on the opportunities that are going to come to the table—because prices are low, whether it’s in the market, distressed debt, a foreclosed home or a business.” Johnson is urging investors to “carpe diem!” Grab those opportunities waiting to be tackled and run with them, because costs in the market are low and home values are only going to increase. Sure, it may take some time, but if history is any predictor, values should go back up when the market swings back in the other direction. If revenues dictate costs, consider the number of short sale or foreclosed properties for sale. Purchasing one of these homes will provide you with a higher return on what you will invest. Now we aren’t suggesting that you run out and purchase the next distressed property you see. But we are suggesting that you consider the possibilities. Also, being an educated investor is imperative to making the process productive for you. Meeting with an AmeriFirst mortgage expert will help you understand every aspect of what it takes to purchase a distressed property, along with your financing options. We can help offer advice on how to strengthen your credit score, should you come up too short to receive a lower rate without points. So stop by for a cup of coffee or sit down for a heart to heart with one of our loan officers to determine how the housing market can work for you. Contact AmeriFirst today to see how you can “carpe diem” too! Call 800-466-5626 or contact us online and let's get started today. Source: Braverman, Beth; Fried, Carla; Kelleher, Lauren; Mannes,George. “The Best Advice Now, and Ever.” Money Magazine. April 2010
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2010.05.06 | 10:00:00
Bracing for the Housing Shortage? One More Reason to Buy Now. |
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Wait…aren’t we experiencing a housing surplus across the country? There’s a foreclosure or short sale on every corner and people are still trying to sell their homes in this difficult market. According to wacky money man, Jim Cramer of CNBC’s “Mad Money,” the country should prepare for a housing shortage sometime in 2011. He recently appeared on NBC’s Today Show and announced that America will be doing an about face on what people have become accustomed to seeing over the past five years.
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