Cincinnati Mortgage Market Presented by Kim Schieldknecht - LO.002028.000, MB.802245.000 of Clermont Financial LLC Mortgage Market Update: Mortgage rates dropped to historic lows in January as credit markets loosened to stimulate the economy. In January, interest rates for a 30-year fixed-rate mortgage briefly dipped down to the high four percent range before settling to their current level, in the low five percent range. According to the National Association of Realtors, existing home sales activity picked up at the end of 2008, with re-sales up 6.5 percent for the last month of the year. The heightened activity also dropped available existing home inventories by 11.7 percent. Real estate markets across the country are seeing increased activity as people take advantage of today's lower rates and adjusted home prices. The association is currently reporting a 9.3 month supply of existing homes for sale, and predicting an annual existing home sales of 4.74 million units for 2009. Finance Q and A: Q: Are Adjustable Rate Mortgages (ARMs) still considered a viable mortgage option? A: Yes, absolutely! Most ARMs are better suited as short term loans for buyers who are planning to sell in few years. By taking out a low interest ARM, the purchaser pays less interest initially, before their rates adjust and the loan is reamortized. If the homeowner expects to sell in two to three years, an ARM might make sense. HOWEVER, if you plan on staying put for more than a couple of years, a fixed-rate loan is probably a better option. Fixed-rate mortgages are predictable and the payments remain the same throughout he life of the loan. For more information on which loan is right for you, consult your mortgage professional today! Tip of the Month: When figuring out what you can afford, it is important to factor in the additional costs of home ownership, beyond the mortgage principle and interest. Be sure to budget for hazard insurance, association dues, property taxes, as well as monthly utilities and other expenses unique to the property. It's also smart to review your anticipated tax savings and home equity growth as your investment grows. Ask your mortgage professional to help you budget today to get the most out of your next purchase!  |
Kim Schieldknecht - LO.002028.000, MB.802245.000
Clermont Financial LLC
726 Mohawk Trail & 5720 gateway blvd #204
Milford and Mason, OH 45150
(513)587-3599
http://www.clermontfinancial.com | |
| | National Statistics Updated 2/1/2009 | | |
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