Federal Reserve to Keep Interest Rates Low Until 2013!

With all that has been going on with our economy, a little bit of good news never hurts! The Federal Reserve last Tuesday announced that they would maintain rates at it's exceptionally low level (near zero) though 2013 to promote on going economic recovery and control inflation. This decision was based on the labor markets nationwide showing little improvement since their last meeting along with slow signs of growth, inflation in the energy markets, and only a slow decline in the unemployment rate.

Applications for U.S. home mortgages rose last week as interest rates fell to their lowest level this year. The turmoil in the stock market has caused a dive in interest rates; we are currently seeing conventional loans at 3.99% and FHA as low as 3.5%.  

What does this mean to you? An interest rate change of 1% equals about a 12% change in buying power, so if you could afford $200,000 loan at 5%, at a 4% interest rate you can now afford a $224,000 loan for the same monthly payment. Even refinancing into a lower rate can save you hundreds in your mortgage payment!

Interest rates are at their lowest point in history and it appears as though we will see them stay at about this level for a little longer. If you are looking to take advantage of this fantastic opportunity to capitalize on the tremendous investment that we have in property ownership, now is the time! Whether you or a friend, family member, or business colleague is looking to purchase or sell to up-size or down-size I can help with that! Even if you just want to refinance to take advantage of these interest rates, I know of several great lender's who can assist that have low closing costs to maximize your savings! Let me know how I can help!

Advice! 10 No-No's While Trying To Get Approved For A Loan!

Many are taking advantage of interest rates at historic lows, either by re-structuring debt with a refinance or purchasing a new home. However, the recent economic crisis has ushered in some even tougher guidelines and credit requirements and there are some things that consumers must be aware of when applying for a loan.

Here is some advice on 10 things NOT to do leading up to a home purchase or under contract on a home to not harm your loan approval. It's best to just wait until after you've signed off at closing and the home is already yours.

1. Don't do anything that will cause a red flag to be raised by the scoring system
2. Don't apply for new credit of any kind
3. Don't pay off collections or charge offs
4. Don't max out or over charge on your credit card accounts
5. Don't consolidate your debt onto 1 or 2 credit cards
6. Don't close credit card accounts
7. Don't pay late
8. Don't allow any accounts to run past due-even one day!
9. Don't dispute anything on your credit report
10. Don't lose contact with your mortgage and real estate professionals