Easy Money; Easy and Cheap Mortgages Are Still Available: for Rehoboth Beach Area Real Estate!
Easy Money; Easy and Cheap Mortgages Are Still Available: We live in WONDERFUL TIMES!
The stock markets of our nation and those of many others have reacted to our suffering mortgage companies. However, as usual there is a silver lining to this apparent cloud.
The American real estate market is still the most stable place you can put your money, over the long term AND you can enjoy your investment in real estate by sleeping in it, eating in it and having fun with your family and friends in it… your home or investment property.
The silly and dangerously loose loans that some lenders made are gone now. The rampantly rising prices of property have stopped; actually it stopped in January of 2006. In almost every instance I can find properties here are selling at the same prices they sold for in Jan. ‘06 and have not sold for more since then. If the price was higher they didn’t sell. Regular loans are available and there are more and more homes available at realistic prices as sellers and their agents realize the real values.
Interest rates are still as low as they have been in the last 50 years or so. A regular borrower; that is a person with sufficient provable income, a reasonable credit score and a reasonable down payment can still get a fixed rate loan, with no points or fees, for 6% or less.
Because lenders are only approving valid buyers now there are far fewer buyers and thus the supply and demand ration favors the legitimate buyers that remain.
Loans are a little more difficult, not much, for properties that require a mortgage for more than $417,000 (the cutoff for so-called jumbo loans).
Here is the deal: Legitimate Buyers need to have at least 10% down payment and 20% is best; they must be able to show where it came from with copies of three years of tax returns; they need to have a credit score of 700 or better and 750 is best. They need to have sufficient income and sufficient income left over after their other payments to afford the new mortgage easily. Those with lower credit scores can still find a loan but not at the lowest rates.
Un-provable income, which is far in excess of what is reported on tax returns, will not be easily accepted for loans these days. However, again, a traditionally decent borrower can still get the cheapest and easiest to obtain mortgage that has been available in this generation.
See lots more useful information about buying and selling real estate at the Delaware Beachs:
http://www.kate-jody.com/essays/index.html
copyright 2007 by Jody Hudson
