Friday, March 7, 2008

Attention All Fencesitters

A title rep distributed this TIME Magazine article to Ignore the Headlines! and pointed out it is not your typical "the sky is falling" mentality. I will now be forever reminded of my pre-school days when my Dad would read Chicken Little to me every night at bedtime as I hear the stories told by the media regarding the imploding mortgage and housing industry. Good news just doesn't sell : )

Regarding the correction to the inputting error I am left to conclude that the down payment on the lesser amount counts as a savings of $4,378 in addition to the whopping $226.80 in spare change after 360 payments are made. When you consider the tax savings realized a year earlier I imagine it's at least a wash. The rates however used for comparison are not realistic in my opinion as we saw rates move upwards around .75% in just a matter of one week and we can only pray that we will see them move down just as fast as they did in the month prior.

We don't wait to fill our gas tanks at $3.33 per gallon in hopes to save a nickel a gallon tomorrow, we buy gas because we need to fill our tanks, though can be wise consumers by limiting our trips, driving more fuel efficient cars, and drive slow like your Grandpa recommends. We can be smart when it comes to home buying too. Do some legwork with regards to your credit, come in with a little money if you can, be a bargain hunter: take advantage of the buyers market negotiate a lower price and ask for seller concessions. When you get the keys make improvements to your home (instead of buying the nicer car for the driveway) and maximize your profits later.

I tell my clients that it is always a good time to be a first-time home buyer, but if you still find yourself holding out for one reason or another just be ready to strike when the iron is hot. I have both purchases and refinances sitting, waiting for another good dip in rates (fingers crossed) to lock in. We will again have good news to sell... it will be "What a great deal we got back when!"

“Is the glass half full, or half empty? It depends on whether you're pouring, or drinking.” -Bill Cosby