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Financing in Morrisville : Real Estate Advice

  • All46
  • Local Info5
  • Home Buying24
  • Home Selling0
  • Market Conditions4

Activity 2
Tue Dec 4, 2012
Jim Bartlett answered:
Hi Irma;
My crystal ball is cracked, it may even be broken. :) Rates today are artifically low due to a slower than normal market and the third round of Quatitative Easing done by the federal government. Quantitative Easing is a practice where the federal government spends money (that they don't have) to buy mortgage backed securities which in turn helps keep rates low. As we progress through and past this "Fiscal Cliff" the fed will have to stop spedning this money. In the end rates will trend upwards in the future. Some mortgage experts predict we will have rates around 5% by this time next year. As rates rise, your buying power drops. please give me a call to discuss this further.
Jim Bartlett 919-961-1238
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Sat Sep 1, 2012
Andy Matejka answered:
Ah, interesting conundrum that we see more of in this new era of lending. While the guidelines RD states are permissable the reality is that there are not too many banks in America that are willing to take on a loan carrying such a risk. The foreclosure process is expensive for lenders if a borrower defaults and not something they want to risk.

Your client is more likely to find better loan terms if they are capable of meeting the 25% down payment requirement anyway which will ultimately lead to lower costs and greater profit over the longer term. However, if you continue to look around and find a source, please come back to update us all so that we can all benefit from making this service provider a resourceful referral partner!
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