The administration recently announced that its going to put another $800 billion into the credit markets to help with consumer and mortgage lending. The response is that mortgage rates on a 30 year fixed loan dropped to around 5.77%, making this a great time for those who have homes to refinance and for those who have a little extra money to purchase.
With most housing markets in a slump, its prime time for real estate investors to pick up some undervalued homes, maybe even a foreclosure deal or two. And add to that a drop in mortgage rates and you’ve suddenly found an amazing deal that is really hard to pass up.
If you’re thinking about diving into a real estate purchase for investment purposes, check with your financial advisor and make sure you’re getting the best deal possible on the land or home you want to buy as well as the mortgage loan you take out.
Remember that if you are refinancing you will be paying closing costs again and some other bank fees, but if the loan percentage is less than a half of a point lower than your previous loan then you’ll most likely make up the additional fees in new savings.