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Rick Bennett's Blog

By Rick Bennett | Agent in 83616

Home Owners: Sell or Refinance?!

Why is the real estate inventory so tight? Not only in the Boise market but around the United States, real estate agents are reporting record low numbers of homes for sale, increasing prices and rejuvenating new home construction, but why now?  Why are people reluctant to sell?
It’s a great time to refinance. Perhaps one of the single biggest reasons people are not selling is due to the lower interest rates and the federally back HARP program.  HARP ( the Home Affordable Refinance Program) allows borrowers that have not missed a payment on their house to refinance, even if their home is valued below the current mortgage amount.  Caveats to the program: you cannot short sell.  You have to stay in the home until such time as you can afford to make up the difference or pay off the balance of the loan.  So if a couple owes $200,000 on their home, the interest rate on their loan is 6.25% and its value is now $155,000. They can refinance and the payment goes from an estimated $1,231.43 for principal and interest over 30 years to $558.29 at 3.5% for principal and interest over 30 years.  Who would want to sell?  Many people will not qualify for a short sale; they have good jobs, are not distressed and want to stay in their home.  It is a simple math equation but what a great opportunity.
If your home is not under water it is also a GREAT time to visit the subject of refinance.  All of the aforementioned scenarios can play out, meaning if your home has equity, lenders are refinancing homes at a torrid pace.  Rising prices in real estate account for a good portion of these new opportunities as America refinances its long term mortgage debt in and around 3.5%. 
I have trusted mortgage lender contacts and would be happy to do a comparative market analysis on your home so you can see what you may or may not qualify for, in relationship to home value and loan amount.  If you need more space, an extra bedroom or two, larger house or the other direction, downsizing, consider SELLING NOW.  Act NOW while rates are at historic lows, inventory depleted and buyers are clamoring to get into the market.   
Call me today for more information,
Rick Bennett, Your Best Boise Real Estate Agent


By Pat and Steve Pribisko,  Sun Mar 3 2013, 15:14
Yes, homeowners who are not under water do have choices they can make.
By Russ Ravary,  Sun Mar 3 2013, 16:24
In Michigan you best have a place to move to before you sell. Easy to sell, hard to find a house to buy

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