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Ready to buy some Pinellas County real estate? Mortgage rates are lowest in 20 years

If the sale of Pinellas County real estate was simply dependent on interest rates, we should be seeing a stampede of homebuyers, because rates are the lowest they have been in 20 years.

According to Freddie Mac, rates for 15-year fixed-rate home loans dropped last week from 3.66 percent to 3.54 percent, the lowest those rates have been since 1991.

Rates for other mortgage profits dropped as well. The average rate for a 30-year fixed mortgage dropped to 4.39 percent, the lowest rate for a 30-year mortgage this year.

Why are real estate mortgage interest rates so low in Pinellas County and elsewhere when there is so much economic uncertainty? Those uncertainties are part of the reason. Mortgage rates follow yields on 10-year U.S. Treasury notes. Weaknesses in the economy have led investors to take money out of the stock market and put it into Treasury bonds. That lowers the yield on the Treasury bonds, and that leads to lower mortgage interest rates.

Congress established Freddie Mac in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. It provides mortgage capital to lenders.

Do those unbelieveably low interest rates make Pinellas County real estate ownership look more attractive to you? Why don’t you give me a call, and we’ll take a look what those rates can mean to you in terms of low monthly mortgage payments.

Call me anytime – 727-643-7100, or beth@bethfrederick.com

Tags: home financing, mortgages, Pinellas County real estate

Five ways to find down payment money when you’re broke

What’s the biggest single obstacle to home ownership? A lot of people would answer, “The down payment — or lack of it.”

For several years now, we ‘ve had the benefit of some pretty easy no-down or little-down financing.  But with the way things are right now, we’re probably not going to see those days come back any time soon.

That means 10 percent or more down loans are much more the norm than they used to be.  But don’t worry — there are a number of easy ways (or sort of easy ways) to raise that down payment money.  Here are a few ideas:

1. SAVE THAT TAX REFUND CHECK

That annual tax refund check from Uncle Sam is always welcome, but how many of us actually earmark that money for a single purpose? Instead of using it to finance a shopping trip to the mall, or using the money for a down payment on a new car, stash it in a savings account, and then do the same thing all over again next year. In very little time you may have all the money you need to buy a new place for yourself.

2. UP YOUR WITHHOLDING

Are your tax refund checks too pitifully small to add up to very much? Or, even worse, are you getting a bill from the IRS instead of a check? There’s an answer for that — march yourself down to your Human Resources Department and ask them to withhold more money from your weekly paycheck.  If you can live with $100 less per week, that’s $5,200 dollars that will be coming your way next year. If that’s a little rich for your blood, $60 per week will give you $3,120 at the end of the year.

3. ASK YOUR RELATIVES FOR MONEY

Tell your parents that you want to buy a home, but that you don’t have enough money for the down payment.  They may surprise you — they may even applaud your maturity in wanting to own your own place. If they won’t give you the money, maybe they will LEND it to you. Be businesslike, and give them decent terms.

4. SELL SOME STUFF

Let’s face it, most of us have plenty of stuff we don’t need. If that describes you and your bulging garage, have a yard sale or a garage sale and turn those musty old items into cash. If you have some things that actually have some real value, you might try selling them on eBay.  You’d be amazed what people will pay for old car parts or 20-year-old Playboy magazines. If you have a sale and end up cleaning out your own garage, offer to sell some stuff for friends and family members, and offer to split the proceeds with them.  Who knows, you may discover a new career as a garage sale expert.

5. INVESTIGATE GOVERNMENT PROGRAMS

Did you spend time in the military? The Veterans Administration may have a no-money-down loan program for you.  Are you a first-time homebuyer?  There may be programs available for you, as well. There are still a surprising number of no-money-down programs out there; your realtor should be able to help you find them. Also, feel free to call me at 727-643-7100.

I know, I know, I said “Fives Ways…” But here’s a bonus idea for you:

SPECIAL BONUS STRATEGY

Get a second job. I know, this isn’t everybody’s idea of heaven. But do it with a short-term rather than a long-term time schedule in mind. I know someone who had a special financial need, and she financed it by signing up as a host of in-home jewelry parties. I know someone else who works every Christmas season at his local Post Office. There are all kinds of seasonal jobs out there. And if you have a special talent or ability, give some thought to who might like to pay for those skills on a part-time or occasional basis. When you get sick of working those additional hours, quit.

I’ll bet you have some make-money ideas of your own. If you do, hit the “comment” button at the top of those post and share them with us.

Tags: down payment, home financing