Most people know that the first time home buyers credit of $8,000 is about to expire November 30th but do you realize that the mortgage rates are also likely to be heading upward soon? No I am not a mortgage broker but I also need to understand the mortgage side of the business.
The Federal Government has pumped over 3/4 of a trillion dollars into the real estate securities and Treasuries to superficially keep interest rates low. The federal program guaranteed funding for over a trillion dollars but is also due to expire by years end. This will result in increased interest rates and home owners having that much more trouble financing. The time to buy is now while the mortgage interest rates remain low.
Visit Charlotte Real Estate - Charlotte NC Homes for Sale today and Begin your home search. The market is still down along with the interest rates. Timing like this does come around too often in a life time. He who succeeds trusted his instincts and reacted in time.
Showing posts with label Charlotte Mortgages. Show all posts
Showing posts with label Charlotte Mortgages. Show all posts
Monday, September 14, 2009
Tuesday, April 14, 2009
Charlotte Homes for Sale - Mortgage Issues
There is one looming factor that is on the horizon that needs to be considered. Many people purchased homes with 80/20 mortgages. An 80/20 mortgage is when you purchase a home with a 80% first mortgage and a 20% 2nd mortgage. The 2nd mortgages were at a higher interest rate and many were adjustable rate mortgages (AKA Arms). The plans were for home owners to refinance the 2 mortgage in a few years before the interest rates adjust. Then the market changed!
Lenders/investors will no longer finance the 20% 2nd mortgages. Many new home buyers will be stuck with their ARMs. This means many ARMs will adjust upward and your monthly payments may become out of reach. You can hope for some appreciation and then perhaps get a new 2nd mortgage for 10%.
I strongly recommend paying additional principle now to your 2nd mortgage so that you can refinance your home later or at least be in a financially secure place in the near future. To learn more about the Charlotte Real Estate market including questions about your mortgage contact Rick Waite @ 704.770.6559 or visit my websites at Charlotte NC Real Estate today.
Lenders/investors will no longer finance the 20% 2nd mortgages. Many new home buyers will be stuck with their ARMs. This means many ARMs will adjust upward and your monthly payments may become out of reach. You can hope for some appreciation and then perhaps get a new 2nd mortgage for 10%.
I strongly recommend paying additional principle now to your 2nd mortgage so that you can refinance your home later or at least be in a financially secure place in the near future. To learn more about the Charlotte Real Estate market including questions about your mortgage contact Rick Waite @ 704.770.6559 or visit my websites at Charlotte NC Real Estate today.
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