|$800,000,000,000! That’s so many zeros I had to look at the figure several times to be sure I got it right! What would you do with that much money? The government has decided to buy collateralized debt through TALF*. That’s car loans, student loans, mortgages, etc. So the Government is buying mortgage debt. What affect is this having? Well, how about a .75% reduction in rates overnight?Our market has been driven by fear and a lack of confidence recently. However, judging purely by phone calls into Superior Home Loans|
in response to this news, confidence is returning! Lots of people want to refinance their homes; and many people are now thinking that this is the time to buy a home. Are you taking advantage of this gift the government has given?
Speaking of government gifts, in an effort to help Veterans, the V.A. recently announced that a veteran could refinance their home for up to 100% of the appraised value. Previously, the V.A. only allowed up to 90% of the value to be refinanced and this meant that a lot of Veterans couldn’t refinance. We have a client that wanted to refinance his home but couldn’t because while the V.A. said it was ok, there were no lenders actually loaning the money on this type of refinance. Two weeks ago Superior Home Loans found 1 lender that will allow a refinance of a V.A. loan up to 100% of the value of the home! If you have a V.A. loan, the best time to refinance it is right now. You may even be able to get some cash out of your home!
Regardless of the type of mortgage you have, this is an excellent time to be sure it’s the best one available for you. It’s true that you may not be able to refinance, and it’s true that if you have an ARM your rate may already be going down. However, if you have an interest rate over 6% you really should give me a call and we’ll let you know what’s available. In fact, you can click here to fill out a quick no-obligation application for potential refinance or purchase of a home.
When you combine already low home prices with eager sellers, and 40 year low interest rates, this is a great time to buy an investment property, a second home, or to buy a new primary residence that better suits your current housing needs. Because we work with the Realtors all over our area, we can refer you to one that has their pulse on the market; just let us know you’re interested.
*Click here to find out more about the Term Asset-Backed Securities Loan Facility (TALF), a facility that will help market participants meet the credit needs of households and small businesses by supporting the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration (SBA).
That's a lot of money!