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Purchasing the home of your dreams is cheaper and easier than ever. Plus, it’s an investment! There is no better time than now to get into a home. Get in and find a deal while the market is wide open!!

With our DU REFI Plus program, we are able to help underwater homeowner’s get out of their high interest rates!  Give us a call to find out how!!  303-830-2208

If you haven’t already taken advantage of the market, it’s not to late!  Rates are continuing to stay down and there is absolutely no better time to refinance your current mortgage or purchase a home.  Home prices are low, rates are low and inventory is a plenty!  Purchasing your new dream home is definitely possible!!!  Give American Capital Financial a call and let us begin to show you the benefits of owning versus renting.

As part of the extension of the first time home buyer tax credit the federal government has also added a tax credit for existing home owners.  If you have owned your primary residence for the past 5 years you can buy a new home and receive up to $6500 in federal tax credits.  This is similar to the first time home buyer tax credit.  This credit ends in April of 2010.

There are several reason why people should think about taking advantage of this credit.   If your family is expanding now, or in the near future and you need a bigger house now is a great time to buy.  People grow out of their homes all the time and now is as good of time as any to get that bigger house.  House prices are low, mortgage rates are extremely low and you get a tax credit!  In all the years I have been doing this I have not seen better time to buy.

I think the best way to go about taking advantage of this tax credit is by lowering your monthly payment.  Look around see if there are homes in your area, or in areas that you want to live that are going for less than what you owe on your home.  We have seen so many people lose their houses to foreclosure that it has become apparent that any one is at risk.  If you can sell your house, and get into a cheaper house you are helping mitigate the risk of foreclosure.  Maybe look at what your finances would be like if you had half the income.  Possibly look at what only one spouse can qualify for in the event that one of you loses your job.   Look at how the tax credit can help accelerate your amortization schedule?  There are endless ways to use this tax credit as the incentive that you need to lower your mortgage payment and put your self in a better financial position.  Everyone needs a raise, but the best way you can give your self a substantial raise would be to lower your monthly mortgage payment.

Here is a scenerio to illustrate exactly what I am talking about.   Bill has a loan for $225,000 but his house is still worth $280,000.  Bill is worried that his wife might lose her job in the future and wants to try and lower his bills.  The kids are moved out so Bill and his wife have no need for a big house any more.  Bill has been in his current loan for five years and currently has a 6% interest rate and pays $1,716 PITI per month.  He finds a house down the street, in a different neighborhood, that is selling for $200,000.  Bill puts his house up for sale and after real estate fees walks away with $43,ooo.  Bill puts $40k down and buys the new house.  Bills new mortgage payment has a rate of 4.75% and a monthly payment of $1,044.63.  Bill is now saving $671 per month and for the first time in years he is actually putting extra money towards retirement.   And on top of all this he is getting $6500 back from the government!  This seems like one of the very few win win scenarios in buying and selling a home.  This is a likely scenario and is something everyone should at least think about.

As the market continues to run on a very flat line, many wonder when (if ever) there will be a positive shift in home prices.  There is only one answer to that… Of course there will be!!  And it starts with you!  You are the driving force in the economy.  There is no better time to buy a home than right now.  Sure you may need a little money to put down on the home but the government is truly looking to seriously pad your wallet (or purse) right back up.  Remember that from now until the end of December 2009 if you are a first time home buyer you are entitled to an $8,000 TAX CREDIT!!  That’s right a credit, not a write off, and actual credit to you for $8,000.  Buying a home now when the market is at rock bottom only set’s you up for success.  A down market has no choice but to go up at some point.  The only way it happens is by getting involved and helping yourself get into a home you have dreamed of and sit on your new investment as it raises in value and diminishes in debt.  Remember only YOU can help turn the market around, and when you can do it and profit a cool $8,000 right away, YOU WIN!!!  Did I mention that rates are still lower than you may ever see them?  Just another reason Now is the right time to buy a home!!  Call me today and I can tell you more!

D.J. Davenport- 303-830-2208

Is there a proper time to ever lock in a rate?  If you ask me I say absolutely….whenever YOU feel the rate is at its lowest.  As much as I wish we were psychic and could predict where rates were going to be tomorrow, a week or month from now, I unfortunately am just not that gifted (nor is anyone else in our industry).  Gambling is fun, but not when it comes to your home and finances.  The key to locking in your interest rate is doing it and not looking back at what it is the next day, week or month.  Most of the time rates are higher than the time you locked anyway.  It all comes down to comfort.  Are you comfortable with your payment?  If the feeling is that you are getting a good deal, then you are a winner regardless of what rates do after you lock them.  Look at it like this: You go to a grocery store and have coupons for a few items and no coupons for others.  Low and behold a week later most of the items you purchased initially without coupons, now have coupons associated with them.  Do you feel like you could have done better?  Possibly, but the fact remains that you still won on that first trip to the grocery store because you were able to buy at discount for some of your items.  There are always going to be opportunities to save money, it all comes down to timing.  If everyone knew the right time, we would all be millionaires!!  Now back to your mortgage- The bottom line is committing to a lock for your mortgage should be a great feeling.  Knowing that you have a rate that you like and can afford makes you a winner regardless of what rates may do a day, week or months from now!      

D.J. Davenport

303-830-2208

When to wait on rate and when not to wait on rate.

Some general musings about closing a mortgage loan today.

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