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Are the mortgage interest rates rising in 2011 – What do the experts have to say

By admin on August 2nd, 2011 | No Comments »

While some mortgage experts are predicting that the home prices may stabilize and may even go up this year, the recent news isn’t encouraging. The interest rates on the mortgage loans are supposed to rise in 2011 and this has already started since the initial part of 2011. We are more than a quarter of the way throughout the year and yet the interest rates on the home mortgage loan remain unchanged. The US real estate market has seen the mortgage rate predictions turn out deadly wrong at times. In the year 2010, there was news that advised mortgage servicers to lock in the interest rates amidst some warnings of serious trouble ahead for the real estate market. But the rates did not go up and they actually fell instead of rising. Thus, why are there discrepancies between the interest rate predictions and the reality?

Few mortgage trends forecasted by the real estate experts for 2011

Most financial experts are of the opinion that one must apply for a new loan when it is the right time for them and they must not wait to outshine the market. The real estate observers have predicted certain trends that can prevail in 2011. Here are some of them.

The interest rate will slowly increase in 2011: According to the Mortgage Bankers Association, the interest rates on mortgage loans will rise throughout the year, hovering somewhere around 5% and increasing to about 6% in 2012. The interest rate rise was already seen since the last quarter of 2010 as it started to rise from 4%. Though any interest rate increase is unwelcomed by most homeowners, a 5% mortgage rate is still determined to be in the low range of rates.
Drop in mortgage refinance applications: There will a sharp drop in the number of mortgage applications as the interest rates will rise throughout the year. Among the total number of mortgage applications in a particular year, almost 80% is taken out for refinancing their original mortgage loans.
Mortgage applications for purchasing a home will be attractive: The MBA foretells that the stabilized home prices and the increase in the number of home sales will spur the number of home mortgage applications for buying a house.

Does the prediction of rising interest rates make sense?

The question that is asked by most people is whether or not there is any rationale behind the predictions of the higher rates. The rates have already been historically low for a number of years and the US has borrowed trillions of dollars throughout the last few years. As there are announcements that the economy will be better and there will be new jobs in the market, there must be an upward pressure on the interest rates.

Thus, if you’re a prospective homebuyer looking forward to getting a home mortgage loan, save enough money and manage your personal finances so that you can manage to live with the outrageously high interest rates. Taking out a loan that is beyond your affordability will make you sulk later as this may put your other debt obligations at stake. Take informed and measured decisions so that you need not go through any kind of future discrepancies.

Interest Rate Table by MortgageFit

Categories: Huntsville Alabama Mortgage
Tags: 2011 mortgage interest rates, huntsville mortgage loan, mortgage loan, Mortgage Rates

Secrets Options Of Real Estate Auctions And Foreclosures

By admin on January 6th, 2011 | No Comments »

A lot of home buyers think that any home they might want to purchase will be listed on real estate Web sites or in newspaper sections, whether sold through brokers or by owners. And indeed, most properties can be found this way. But limiting any search to just these channels can eliminate many prospects for a new home.

“The ‘hidden’ options of auctions and foreclosures can open up greater possibilities,” says Ian, Broker/Owner with Armstrong Denver Real Estate Services. In some cases, these purchase methods can even offer opportunities to consumers who might not otherwise be able to purchase a home.

Properties are auctioned by motivated sellers for a variety of reasons, but the reasons rarely have any effect on the property itself. In the recent housing market, foreclosure has become regrettably familiar. But this creates a situation where banks and other mortgagees have a surplus of properties that they would rather divest themselves of than own.

Auctions and foreclosures can be found in most every area, too, and in almost every market segment: single-family homes, condos, resort and multi-unit properties.

Yet many consumers may be unaware of these purchase options or are reluctant to pursue them, due to a lack of knowledge. Certainly learning the ropes to these “alternative” homeownership paths can be difficult, and the cost of making a mistake can be steep.

However, working with someone who understands these industry niches can smooth out the process. “Real estate professionals who know how to manage both traditional transactions and those conducted through less well-known purchasing methods can help guide consumers through the intricacies of such alternative-method purchases,” says Armstrong

Ian Armstrong is one of more than 40,000 members of the Real Estate Buyer’s Agent Council (REBAC) of the NATIONAL ASSOCIATION OF REALTORS®, who have attained the Accredited Buyer Representative (ABR®) designation. As the world’s largest association of real estate professionals focusing specifically on representing the real estate buyer, REBAC is “The Voice for Buyer Representation,” with more than 40,000 active real estate professional members of the organization throughout the world.

Whether down the traditional route transacting business through a seller’s agent or along less-traveled paths of finding auction and foreclosure properties, ABR-designated REALTORS® make a buyer’s best interests their own.

Denver Colorado real estate market

Categories: Huntsville Alabama Foreclosures
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