The Mortgage Blog

To many of my loyal blog readers i'm sure this is going to sound repetitive, but I really can't say it enough...GET OUT THERE AND BUY!  As of this writing we are seeing APR's (annual percentage rate) in the very low 4 percent range.  This is truly amazing, it is like legally stealing money from the Banks.  I am pushing so hard on this because I still remember when I was buying my first home, rates were 11.5%!!  There is a very interesting change of events happening and I don't want you to be a victim.  And that is, Landlords are back in the drivers seat again.  So that means higher rents. Why? Because many mortgage programs are now extinct and you no longer can just fog a mirror to get approved.  You actually have to have some money and good credit.  But with that said, you can still by a home with as little as 3.5% down and the seller can still help pay closing cost.

Think of it this way, to buy a $120,000 home with taxes of $3,500 annually, your total mortgage payment all in would be about $971.00.  That same amount would probably get you a very small apartment with strict rules on how you can "make it your own".  And remember, no tax write off's no pride of ownership and no equity build up.  Do you see what I am getting at?  Once these rates start ticking up again you will loose purchase power and possibly the opportunity to get into a starter home that a few years back may have been considered a move up home.  Don't delay anymore get pre-approved or at least start investigating what you need to do to get the ball rolling.  And of course, I am here for any questions you may have.

Good Luck

John Milano

Email:  john@centerpointemortgage.com