Buying or Refinancing a Home in 2009? A Must Read!
Posted on | December 25, 2008 | 6 Comments
We all know that mortgage interest rates have drastically declined in the last 8 weeks. We also know that the value of homes has halved themselves in many markets with some markets being down over 70%. With that knowledge, it is a great time to buy a home and if you already have one, refinancing is the best option, correct? Maybe not; there are more things to consider then just the falling mortgage rates and home prices.
The first thing that I would suggest every single homeowner or future homeowner to do is find out the different types of mortgage loans. A great link is available at the Home Buying Institute. If you do not know the difference in a Balloon Loan and an ARM, doing the research could save you a lot of money in the future. Another major aspect of your life that you need to consider is “where is your current credit rating and where is it headed?” If you do have great credit, but you are starting to see a decline in savings, it might not be a good idea to go out and get a mortgage payment. The opposite may hold true; if your credit isn’t great, but you just got promoted and your savings account is starting to increase, maybe 2009 is your year to make that home purchase. When considering refinancing, the same rules apply. Analyze your current credit and the direction of your credit before you decide to go to your lender for that Refi.
Also, make sure to realize that fees and closing costs add up quickly. If you think you are going to get a $200,000 mortgage for $200,000 you are sadly mistaken. Realize that many of these fees are charged up from so you many need an extra $10,000 just to cover some of the fees and costs that are involved in a new mortgage or the refinancing of a current mortgage.
One of the most important things to consider, especially in this economy, is that mortgage brokers are not trying to help you! They want to put money in THEIR pockets so they can feed their families in this struggling economic environment. Never let them convince you that they are doing it all for you. They do this just so you will sign the document that gives them the money to survive this month.
This is just the beginning of the issues that arise when considering buying or refinancing a home in 2009. Check back at Subprime Blogger next week and we will give you some more tips and tricks to make the home buying or refinancing experience a good one in 2009.
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6 Responses to “Buying or Refinancing a Home in 2009? A Must Read!”
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December 25th, 2008 @ 6:26 pm
[...] the rest of this great post here Share and Enjoy: These icons link to social bookmarking sites where readers can share and [...]
December 26th, 2008 @ 6:52 am
[...] about different types of loans, and how they differ in payment [...]
December 26th, 2008 @ 8:23 am
Most people do not realize how much add on’s go into refi’s. Unless you plan to reduce your rate by 1-2 % and hold the home for 7 or more years refi’s will not make you money. The above website help’s us to understand that the broker is just like a real estate agent. They will tell you anything to sell the home(loan). Beware!!!
January 5th, 2009 @ 11:51 am
[...] Buying or Refinancing a Home in 2009 – A Must Read [...]
January 7th, 2009 @ 8:28 pm
[...] Buying or Refinancing a Home in 2009? A Must Read [...]
January 30th, 2009 @ 11:19 pm
I think you did a great job writing . Bravo.