a simple explanation of inflation and mortgage rates

That is because home loan rates are tied to Mortgage Backed Securities, which are a type of Bond. So as Bond prices improve, so do home loan rates. The simple truth is when inflation or just the fear of inflation grows, both Bonds and home loan rates take a turn for the worse. That’s because lower Bond prices are needed to give Bond investors juicier yields that will help out-pace inflation.

Gold, Guns or Real Estate?

Today’s historic low real estate prices in Raleigh North Carolina and the surrounding areas along with similarly low rates have made homeownership the best tool or hedge against inflation the average person can use to protect themselves from the imminent rising prices. If you have been waiting for the bottom, this loan officer is going on the record as saying THIS IS IT! Of course we will have no way of knowing that to be true until we look back six months from now and see that I was right, but by then it will be too late and you will have missed the best opportunity to have bought real estate in easily 30 or more years!

Markets Moved by Tsunami and Saudi Arabia

Remember, housing will likely be in a much better position in the second half of the year and at that time rates could be a bit higher. Now’s the time to take advantage of the combination of low rates and affordable housing.

FHA Annual Mortgage Insurance Premium to Increase

This increase could cost your buyers more money each month for their total monthly mortgage payment. What can your buyers do? If they are close to contract, advise them to buy now before the new mortgage insurance premium takes effect. They must have an active loan application for the subject property prior to April 18, 2011.

Rent payments now appear on Experian credit reports

Even if you use traditional credit very little, now you can build a good history by having your rent payments reported to the credit bureau. Continue reading Rent payments now appear on Experian credit reports

3 Down Payment Assistance Programs for Raleigh Homebuyers

three little known down payment grants for home buyers in Raleigh North Carolina

8 Things to Know About Hiring a Contractor

Even if a friend or relative has recommended a contractor that he or she has used before, you should establish some minimum credentials. Get the full company name and address, and make sure that the firm has a current state license and adequate insurance coverage. (Typically, this means at least a million dollars in liability and worker’s compensation coverage.) Get license and policy numbers, then verify that they are current. Determine whether any formal complaints or legal actions have occurred in the past or are pending.