Real Estate News for North Pinellas County

Archive for October, 2011

Rates keep on tumbling – in Pinellas County and elsewhere

Do you think of yourself as a nervy risk-taker? Steely-eyed, firm of hand, able to discern real opportunities when they come along?

If so, and you have a mortgage on your home, you may be starting to think about refinancing. After all, interest rates are at historic lows. Just about 10 days ago, Freddie Mac reported the average rate for 30-year fixed mortgages had dropped to 3.94 percent, which was the lowest rate in history.

So why wouldn’t you take advantage of that unbelievably low rate and refinance the old ranch?

graph downWell, because a lot of experts are saying that mortgage rates might go even lower, that’s why. That’s where the steely eyes and the firm hands come into play.

You could re-finance now and take advantage of great mortgage interest rates. OR, you could wait a little longer and (perhaps) take advantage of even lower interest rates.

Rates may vary a little bit in different areas around the country. But rates are WAY down almost everywhere you look, and the end of falling rates may not be in sight yet.

Why do these rates keep coming down? There are several reasons:

The Federal Reserve has been buying up mortgage-backed securities in hopes of forcing interest rates down.

President Obama is trying to strengthen the Home Affordable Refinance Program, which helps home owners refinance their properties – even properties with little or no equity.

The idea behind all this is that if lots of people refinance their mortgages, it could have a stimulating effect on the economy at large.

With current rates hovering around (or even below) four percent, it’s tempting to think about refinancing now. After all, how much lower can the rates go?

Many industry observers believe that you should be able to cut at least one percent off your rate when you re-finance. If you can’t do that, they say, closing costs and fees could counteract the benefits of the refinance.

But if you can talk the lender into waiving many of the fees associated with a refinance, then it may make sense to refinance, even if the new rate is only a half-percent better than the old one.

So… do ya feel lucky? Well, do ya?

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We got away from Pinellas County real estate for awhile…

You may have noticed a distinct lack of posts lately.  The reason: We were on a three-week motorcycle trip through New Mexico.

I won’t go on and on about the trip or the great beauty of the state of New Mexico, but I will add a single picture here of some of the scenery. If you want to see more, you can go to the blog we maintained during the trip. Lots of pictures there, and more coming in the next few days.

Then we’ll get back to blogging about Pinellas County real estate!

Bright colors and red peppers. You see them both all over New Mexico. This was in Taos.

Bright colors and red peppers. You see them both all over New Mexico. This was in Taos.