Tucson AZ Home Loan Info

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Mike's Forecast: (February 24, 2009) Strike While the Iron Is Hot

We all make business and personal finance decisions every day.  What to buy, what not to buy.  What to put off, like replacing the tranny after 130,000 miles on the Ford Explorer.

If you're making a decision on whether to (1) buy a home, or (2) refinance the one you have, here are a few bullet points to help you decide between sooner and later.

Refinance

  1. The ACORN billions are likely to be spent politically.  "Freeze foreclosures."  That's not a good prospect, because it will prolong the inevitable "bottom."  Home prices continue to decline because of uncertainty in the market, and what your home will appraise for now is likely to be higher than what your home will appraise for in two to six months.
  2. Even though the market dropped to a 12 year low yesterday, interest rates went up.  Wrong way, Charlie!  Today's rate and today's appraised value are better than tomorrow's prospect. 
    Strike while the iron is hot.

Purchase

  1. While tomorrow's value on a particular home may be less (and we all like to pay less) the prospect of available funds to buy that house are better today than they are likely to be tomorrow.  Strike while you can.

A Bloomberg article this morning by Gavin Finch underlines the necessity of acting now:

The Fed’s quarterly Senior Loan Officer survey released Feb. 2 found that more than 65 percent of banks restricted lending the previous three months even as they received about $200 billion of taxpayer funds from the government.

U.S. gross domestic product probably shrank 5.4 percent in the fourth quarter, the biggest contraction since 1983, according to the median estimate of 60 economists surveyed by Bloomberg. Moody’s Investors Service says corporate defaults may rise to 16.4 percent by November, the highest since the Great Depression and about three times the current rate.

After taking about $1.1 trillion of writedowns and losses since the start of 2007, the financial system remains so troubled that the government may have to nationalize some banks for a short time, Senate Banking Committee Chairman Christopher Dodd said.

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.
Mike Jones (Tucson Mortgage Company, LLC): Loan Officer in Tucson, Pima County, Arizona
Think of me as your Tucson mortgage expert.


Call me if I can help you with a purchase or refi mortgage;
(520) 349-9090

Comment balloon 13 commentsMike Jones • February 24 2009 10:11AM

Comments

Mike,

Many, many people are waiting for low cost 4% mortgages. The unfortunate thing is they are passing up today's great opportunities for this pipe dream. The American Dream and system are being dismantled day by day those that wait may never have a chance again.

Every one wants a bigger and better deal so they do nothing. Those that succeed will take advantage of today's options which are great when compared to any ones experience.

Bill

Posted by William J. Archambault, Jr. (The Real Estate Investment Institute ) over 11 years ago

Bill,

Your analysis is better than my post!  I really appreciate your input; it's why I'm a subscriber to your blog.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 11 years ago

Mike,

Analysis becomes part of each post. The thing I like best about blogging as compared to other media, I've been regularly published since 1963/4 is that blogs keep getting better as the readers interact with the author!

Bill

Posted by William J. Archambault, Jr. (The Real Estate Investment Institute ) over 11 years ago

Mike,

Hold on tight...the merry go round is picking up speed...!!! Thanks,   Fran

Posted by Fran Gaspari, "The Title Man" - Title Insurance - PA & NJ (Patriot Land Transfer, Inc.) over 11 years ago

Mike - I too, love Bill's analysis and insights.  Interesting article from Bloomberg that I missed.  It may not be a bad idea to pass it on...

Posted by Jason Sardi, Your Agent for Life (Auto & Home & Life Insurance throughout North Carolina) over 11 years ago

So many buyers are missing out on great deals waiting for the perfect time.  I hope they all don't act together.

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) over 11 years ago

Mike,

You hit the nail on the head on this one. Those striking right now are making great deals that are positioning themselves in an excellent position for the future!

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker Realty ~ 512.750.6899) over 11 years ago

Dorie,

Thanks for commenting, and good luck today!

Terry,

I don't mind if they do.  LOL

Jason,

Thanks for stopping by; see you on your blog.

Fran,

Bet you've been busy for the last three days!  Things are picking up.

Bill,

Thanks!  We appreciate you.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 11 years ago

HI MIKE!  How are rules, conditions, etc., for lot loans going these days?  And for lot loans on second homes??!!! -- Gab

Posted by Gabrielle Kamahele Rhind, Broker/Owner (KGC Properties LLC, Tucson Property Management & Real Estate) over 11 years ago

Hi Mike - I think people may be starting to "get it". Both the existing homeowners trying to take advantage of refinancing while they can and the first time home buyers scrambling to snatch up the affordable homes while they can take advantage of the $8,000 tax credit. Our ABCs of Homebuying class at the local community college had a lot of motivated students in it last weekend!

Posted by Karen Cooper, Helping Homeowners w/Home Loans in 27 US States (Karen Cooper | Sr Retail Loan Originator ! NMLS # 223305 | 360 Mortgage Group LLC Austin Texas) over 11 years ago

Karen,

I'll have to check our local community college to see if they offer something like that.  Thanks for the idea.

Gab,

Things are tightening up for lot loans.  They must be improved (all utilities) and the buyer has to come in with at least 20%.  Even then, term is restricted.  Call me.

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 11 years ago

Waiting for the market to bottom is rather foolish since it won't be known until after the fact.  Then interest rates will be up.  I wonder how many people will be kicking themselves in a couple of years...

Posted by Doreen McPherson, Phoenix Arizona Real Estate ~ (Homesmart ~ Scottsdale ~ Tempe) over 11 years ago

Doreen,

Add to that the fact that the government has gone stark raving mad.  Strike while the iron is hot!

Mike in Tucson

Posted by Mike Jones, Mike Jones NMLS 223495 (SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) ) over 11 years ago

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