Jan 11, 2013

Tip 2-2013: Historically Low Interest Rates

As last week's Tucker's Tip indicated, the New Year (2013) should be a great rebound year for the real estate market. We all know that this is an excellent time to purchase a home. Whether the purchaser is a first time homebuyer, a move up home buyer, or an investment property buyer, all potential purchasers should take advantage of the lowest interest rates in years. With these low interest rates and the possibility of rising house prices, this is an excellent time for any potential purchaser to "pull the plug" and buy now.

Current homeowners should also take advantage of these low interest rates with a refinance of their current loan. The homeowner may even consider a fifteen year term instead of the normal thirty year loan. There is approximately a 0.625 % spread between the 15 and 30 year loan terms.

Even if the home value is upside down, the homeowner who is current on his payments has the opportunity to refinance. The Government's HARP2 (Home Affordable Refinance Program) will allow the upside down homeowner to refinance.

Please contact all of our excellent local lenders to take advantage of the low interest rates. A non-local or internet lender with no local presence will not be able to offer the customer service that our local lenders can offer. Advise all of your friends and neighbors to call our local lenders who are always willing to resolve any problems and to make the loan process as smooth as possible.

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

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