What to Expect in 2009
Posted on | December 30, 2008 | No Comments
Though no one has a crystal ball, there is a lot of discussion about the real estate and mortgage industry right now. I have heard things that seem to be rather outrageous, like interest rate going to 2 and 3% and things that seem more reasonable, like interest rates going to 4 to 4.5% for both buyers and those who can free up some money by refinancing.
No matter where interest rates go, make sure you take the time to get several Good Faith Estimates to compare the costs of the loan. Most people forget to look at the overall cost and only focus on the interest rate. If you don’t know how to read a GFE (Good Faith Estimate) go to your accountant; they should be able to help you and are an independent source. If you can’t get a GFE, don’t do business with that person or company. It makes common sense to do business with someone that will give you the paperwork trail.
Home prices are expected to fall some more before they level off, especially in the areas that have been hit hard like Florida and California. It does look like 2009 is going to be a great years to refinance your current loan to a lower fixed interest rate or to purchase a home at a good price and interest rate. However, just keep in mind that, anything can change at any time.
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