Fed meeting announcment released today confirmed that the Feds stand ready to throw the kitchen sink, the dog, the canary, granma's teeth, and anything else they can get their hands on at the economic crisis we are deep unerway on.
They have been steadily buying mortgage backed securities (MBS) which has helped keep interest rates low. They intend to increase and expand their MBS purchases which will ensure that for the foreseeable future mortgage interest rates will not only stay low, but likely decline. Reats have creeped back up recently into the low 5% range but stand firm on our belief that before the end of February we will be in the mid to low 4% range on 30 year fixed mortgage loans.
The Feds also announced that they intend to keep the overnight lending rates between 0%-1/4%. In our opinion this is something that will continue for several years to come. This is great news for those with Equity lines of credit that are at prime (currently 3.3%-3.5%)! IF your lucky enough to have some money now is the time to take advantage of the low cost to borrower against it and use it make some money.
I have a family member with an equity line and have assisted him in using it for private lending (also known as hard money). He is in at 20% LTV loans on free and clear properties making 12.75% return on his money that is only costing him 3.3% to loan out :). More and more people are turnging to private investors as banks turn their back on everyone but Donal Trump and Opray Winfrey.
There are any number of ways one can take advantage of the current market. Stay positive, keep your eyes and ears open, and find a way to make this moment yours!
Wednesday, January 28, 2009
Monday, January 26, 2009
Weekly Poll Results: Most Important Aspect of New Stimulus Package
It's that time again. Last week's weekly poll was "What Is The Most Important Aspect of New Stimulus Package"?
The poll results were 100% in agreement that it should be Infrastructure Spending.
The other options were Tax Rebates, Unemployment Compensation Increases, And Other.
These polls always suprise because you would think everyone would immediatly choose to recieve instant money through a tax rebate or lower taxes. The fact that people recognize that in order to recover we need to spend more on infrastructure tells us that we are living in one of the most politically aware times. People seem to know what is going on these days. That would explain why we have a historic presidency today. Had Mr. Obama run four or eight years ago he wouldn't have stood a chance.
Because the country is finally fed up they chose to get educated about the issues and make an informed decision!
Thank you to all who took time to participate in the polls. We were recently featured on a Fox 35 news piece that we utilized our poll information on. We will post a link to the video of the news piece when it becomes available. We appreciate your continued contributions to a more educated and empowered USA.
The poll results were 100% in agreement that it should be Infrastructure Spending.
The other options were Tax Rebates, Unemployment Compensation Increases, And Other.
These polls always suprise because you would think everyone would immediatly choose to recieve instant money through a tax rebate or lower taxes. The fact that people recognize that in order to recover we need to spend more on infrastructure tells us that we are living in one of the most politically aware times. People seem to know what is going on these days. That would explain why we have a historic presidency today. Had Mr. Obama run four or eight years ago he wouldn't have stood a chance.
Because the country is finally fed up they chose to get educated about the issues and make an informed decision!
Thank you to all who took time to participate in the polls. We were recently featured on a Fox 35 news piece that we utilized our poll information on. We will post a link to the video of the news piece when it becomes available. We appreciate your continued contributions to a more educated and empowered USA.
Monday, January 19, 2009
Breaking Economic News - Stimulus package to contain reinstatement of down payment assistance
We must first note that this news has not been independently confirmed as yet
Our sources indicate that as part of the new stimulus package being kicked through Congress right now, they intend to reinstate down payment assistance for home buyers. They will be required to take a home buying class and pay $250 at closing. Sellers can contribute up to 6% and lender participation in this program will become MANDATORY.
That's right apprently someone finally grew a pair and decided that instead of passing meaningless new programs that no lenders participate in they will require it of them... FINALLY.
Word is that if a lender does not comply they will be reported to a federal agency that will investigate them.
News of this scale will surely make National headlines which is why we want to independently verify this informaiton before making an official announcement. Stay tuned as we hope to be able to get confirmation of this news as well as details of the program for you tomorrow!
Our sources indicate that as part of the new stimulus package being kicked through Congress right now, they intend to reinstate down payment assistance for home buyers. They will be required to take a home buying class and pay $250 at closing. Sellers can contribute up to 6% and lender participation in this program will become MANDATORY.
That's right apprently someone finally grew a pair and decided that instead of passing meaningless new programs that no lenders participate in they will require it of them... FINALLY.
Word is that if a lender does not comply they will be reported to a federal agency that will investigate them.
News of this scale will surely make National headlines which is why we want to independently verify this informaiton before making an official announcement. Stay tuned as we hope to be able to get confirmation of this news as well as details of the program for you tomorrow!
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